Business & Finance
Thu, December 24, 2009Wed, December 23, 2009Tue, December 22, 2009Mon, December 21, 2009Sat, December 19, 2009Fri, December 18, 2009Thu, December 17, 2009Fitch Rates Tortoise Energy Infrastructure Corp's Notes Series F and G 'AAA'
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Published in Business and Finance on Tuesday, December 22nd 2009 at 6:50 GMT by Market Wire🞛 This publication is a summary or evaluation of another publication
NEW YORK--([ BUSINESS WIRE ])--Fitch Ratings has assigned an 'AAA' ratings to the following securities issued by Tortoise Energy Infrastructure Corporation (NYSE: TYG), a closed-end fund managed by Tortoise Capital Advisors, LLC (Tortoise):
--$29,975,000 of series F senior notes due in December 2012;
--$30,000,000 of series G senior notes due in December 2016.
Fitch also takes the following rating actions on other outstanding senior securities issued by the same fund:
--$110,000,000 series E senior unsecured notes due in April, 2015 - affirmed at 'AAA';
--$60,000,000 series A senior unsecured notes due in July, 2044 - paid in full;
--$73,000,000 of mandatory redeemable preferred shares (MRP shares), with a liquidation preference of $10 per share, due in December 2019 - affirmed at 'AA'.
The assigned rating is based on sufficient asset coverage provided to the series F and G notes by the fund's underlying portfolio of assets, structural protections afforded by mandatory de-leveraging provisions in the event of asset coverage declines and the capabilities of Tortoise as investment advisor. The fund used the net proceeds from the sale of the newly issued series F and G notes to redeem in full its outstanding series A notes while maintaining the fund's leveraged capital structure.
At the time of the issuance of the series F and G notes, the fund's pro forma asset coverage ratio, as calculated in accordance with the Investment Company Act of 1940 (1940 Act), is in excess of 300%, which is the minimum asset coverage required by the 1940 Act. Also, at the time of issuance, the fund's pro forma asset coverage ratio, as calculated in accordance with the Fitch overcollateralization test per the 'AAA' rating guidelines outlined in Fitch's 'Closed-End Fund Debt and Preferred Stock Rating Criteria' is in excess of 100%, which is the minimum asset coverage deemed consistent with an 'AAA' rating.
Tortoise Energy Infrastructure Corporation is a non-diversified, closed-end management investment company that commenced operations on Feb. 27, 2004. As of Nov. 30, 2009, the fund's total assets were approximately $1 billion. The fund seeks to obtain a high level of total return with an emphasis on current distributions paid to its stockholders. The fund currently invests the majority of its portfolio in equity securities of publicly-traded master limited partnerships (MLPs) and their affiliates in the energy infrastructure sector. These companies gather, transport, process, store, distribute or market natural gas, natural gas liquids, coal, crude oil, refined petroleum products or other natural resources, or explore, develop, manage or produce such commodities.
Tortoise, a wholly owned subsidiary of Tortoise Holdings, LLC, is the fund's investment adviser, responsible for the fund's overall investment strategy and its implementation. The advisor was formed in October 2002 and, as of Oct. 31, 2009, it had approximately $2.5 billion in assets under management. Mariner Holdings, LLC owns approximately 65% of Tortoise Holdings, LLC, with the remaining interest held by Tortoise's five managing directors and certain other senior Tortoise employees.
Applicable criteria available on Fitch's Web site at [ www.fitchratings.com ]: 'Closed-End Fund Debt and Preferred Stock Rating Criteria', dated Aug. 17, 2009.
Additional information is available at [ www.fitchratings.com ].
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