Tortoise Energy Capital Corp. Completes $60 Million Public Offering of Mandatory Redeemable Preferred Shares & Provides Notic...
30 November 2009 - 11:46PM
Business Wire
Tortoise Energy Capital Corp. (NYSE: TYY) today announced that
it has completed the sale of 6,000,000 of its Mandatory Redeemable
Preferred (MRP) Shares at $10.00 per share. The net proceeds from
this offering, after expenses, will be approximately $58.5 million.
The MRP Shares have a fixed dividend rate of 5.60 percent with a
mandatory redemption on Nov. 30, 2016.
Application has been made to list the MRP Shares on the New York
Stock Exchange (NYSE) so that trading may begin within 30 days
after Nov. 24, 2009, under the symbol “TYY Pr A”. The MRP Shares
are rated "Aa2"and "AA" by Moody's Investor Services, Inc. and
Fitch Ratings, respectively. The company has granted the
underwriters a 30-day option to purchase a maximum of 500,000
additional MRP Shares to cover over-allotments, if any.
The company will use these net proceeds, along with funds
borrowed from its credit facility, to redeem all $65 million of its
outstanding Auction Rate Preferred Shares. The $40 million of
Series I shares will be redeemed on Dec. 29, 2009 and the $25
million of its outstanding Series II Auction Rate Preferred Shares
will be redeemed on Dec. 17, 2009. Upon completion of its
redemption of the outstanding auction rate preferred shares, TYY
will no longer have any auction rate securities outstanding.
“We are pleased to complete the offering of our mandatory
redeemable preferred shares and provide liquidity to our auction
rate preferred stockholders,” said Terry Matlack, Chief Financial
Officer for Tortoise Energy Capital Corp. “This fulfills our
previously stated plan to redeem all auction rate securities when
the capital markets provided a suitable leverage alternative that
benefits all TYY stockholders.”
BofA Merrill Lynch and Wells Fargo Securities acted as Joint
Book-Running Managers for the offering. Wells Fargo Securities
acted as Sole Structuring Coordinator.
The offering is made pursuant to an existing effective shelf
registration statement on Form N-2 previously filed with the
Securities and Exchange Commission. The offering of these
securities will be made only by means of a prospectus. A copy of
the prospectus supplement and prospectus relating to the offering
may be obtained from:
Banc of America Securities LLC at One Bryant Park, New York,
N.Y. 10036, and Wells Fargo Securities, LLC at One Wachovia Center,
6th Floor, 301 South College Street, Charlotte, N.C. 28288.
About Tortoise Energy Capital Corp.
Tortoise Energy Capital Corp. provides financing for master
limited partnerships (MLPs) in the energy infrastructure sector,
focusing on crude oil and refined petroleum products MLPs and
natural gas and natural gas liquids pipelines MLPs. Tortoise Energy
Capital Corp. seeks to provide its stockholders a high level of
total return with an emphasis on current distributions.
About Tortoise Capital Advisors, LLC
Tortoise is an investment manager specializing in listed energy
infrastructure, such as pipeline and power companies. As of Oct.
31, 2009, Tortoise had approximately $2.5 billion of assets under
management in five NYSE-listed investment companies and private
accounts. For more information, visit our Web site at
www.tortoiseadvisors.com.
Safe Harbor Statement This press release shall not
constitute an offer to sell or a solicitation to buy, nor shall
there be any sale of these 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.
Forward-Looking Statement
This press release contains certain statements that may include
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical fact, included herein are "forward-looking statements."
Although the company and Tortoise Capital Advisors believe that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. Actual results
could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in the company’s reports that are filed
with the Securities and Exchange Commission. You should not place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. Other than as required
by law, the company and Tortoise Capital Advisors do not assume a
duty to update this forward-looking statement.
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