Tortoise Capital Advisors, LLC Provides Update On Credit Facilities Agreements for Its Publicly-Traded Closed End Funds
19 Juni 2009 - 11:07PM
Business Wire
Tortoise Capital Advisors, LLC, the adviser for Tortoise Energy
Infrastructure Corp., Tortoise Energy Capital Corp., Tortoise North
American Energy Corp, and Tortoise Capital Resources, Corp. (NYSE:
TYG) (NYSE: TYY) (NYSE: TYN) (NYSE: TTO), announced today all of
its publicly traded closed end funds have amended their credit
facilities. TYG has entered into a $70 million credit facility, TYY
has entered into a $50 million credit facility and TYN has entered
into a $10 million credit facility. Each of these agreements will
mature on June 20, 2010, and are unsecured. TYG currently has $20.5
million outstanding on its credit facility, while TYY and TYN
currently have no borrowings on their facilities.
Under the terms of these credit facilities, outstanding balances
generally will accrue interest at a variable rate equal to
one-month LIBOR plus 2.00 percent with a fee of 0.25 percent on any
unused balance of the facility. U.S. Bank, N.A. remains a lender
and the lending syndicate agent.
�We believe these facilities will meet our borrowing needs over
the next year, and expect to use the facility as needed for
investments, general working capital purposes and to partially
refinance existing leverage,� said Terry Matlack, Chief Financial
Officer for the funds. �We continue to expect to redeem all
remaining 7- and 28-day auction rate securities as soon as the
capital markets provide a suitable longer term alternative and when
the leverage can be replaced in a manner that will provide long
term stockholder value, with a goal of completing these redemptions
by the end of the calendar year.�
TTO has entered into a 60-day extension of its amended credit
facility through Aug. 20, 2009. The terms of the extension provide
for a secured revolving credit facility of up to $11.7 million. TTO
has $11.7 million outstanding on its credit facility, net of
anticipated paydowns as a result of completed portfolio sales. The
amended credit facility retains the provision requiring TTO to
apply 100 percent of the proceeds from any private investment
liquidation and 50 percent of the proceeds from the sale of any
publicly traded portfolio assets to the outstanding balance of the
facility.
During the extension, outstanding loan balances generally will
accrue interest at a variable rate equal to the greater of (i)
one-month LIBOR plus 3.00 percent, and (ii) 5.50 percent, with a
fee of 0.50 percent on any unused balance of the facility.
�We reduced the TTO outstanding credit facility balance by
selling some of our public investments,� said Mr. Matlack. �We will
continue our active discussions with our existing and prospective
lenders with the goal of entering into a new longer term credit
facility by Aug. 20, 2009.�
Tortoise Capital Advisors, LLC is a pioneer in capital
markets for MLP investment companies and a leader in closed-end
funds and separately managed accounts focused on MLPs in the energy
sector. As of May 31, 2009, the Adviser had approximately $2.0
billion of assets under management.
Safe Harbor Statement
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of,
the securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
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