Business & Finance
Business and Finance
Business and Finance
Fri, March 25, 2011
Thu, March 24, 2011 Tortoise Energy Capital Corp.'s 5.6% MRPS Paid in Full
NEW YORK--([ BUSINESS WIRE ])--The 5.6% Mandatory Redeemable Preferred Shares (MRPS) issued by Tortoise Energy Capital Corp. (NYSE:TYY), a closed-end fund managed by Tortoise Capital Advisors, LLC, are paid in full following the announced redemption of all outstanding 5.6% MRPS. The MRPS were rated 'AA' by Fitch prior to the redemption.
The MRPS were redeemed on March 14, 2011 at $10.10 per share, which was comprised of the liquidation preference amount of $10.00 per share and the required redemption premium of $0.10 per share, plus accrued dividends. TYY utilized net proceeds from its recent issuance of $50 million 5.0% series B MRPS (rated 'AA' by Fitch) and its bank credit facility to facilitate the redemption.
TYY is a non-diversified, closed-end management investment company that commenced operations on May 31, 2005. As of Feb. 28, 2011, the fund's total assets were $831.7 million.
Tortoise Capital Advisors, LLC, a wholly owned subsidiary of Tortoise Holdings, LLC, is TYY's investment adviser, responsible for the fund's overall investment strategy and its implementation. The advisor was formed in October 2002 and, as of Feb. 28, 2011, had approximately $6.6 billion in assets under management in six NYSE-listed investment companies and private accounts.
Additional information is available at '[ www.fitchratings.com ]'.
Applicable Criteria and Related Research:
'Closed-End Funds: Redemptions Provide Some Liquidity to Illiquid ARPS Market' Aug. 31, 2010;
'Closed-End Funds: Fitch Clarifies Criteria for Make-Whole Amounts and Other Prepayment Obligations' March 18, 2010;
'Closed-End Fund Debt and Preferred Stock Rating Criteria' Aug. 17, 2009;
'Closed-End Funds: Evolving Use of Leverage and Derivatives' Sept. 27, 2010.
Applicable Criteria and Related Research:
Closed-End Funds: Redemptions Provide Some Liquidity to Illiquid ARPS Market
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=552106 ]
Closed-End Fund Debt and Preferred Stock Rating Criteria
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=462492 ]
Closed-End Funds: Evolving Use of Leverage and Derivatives
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=559525 ]
Closed-End Funds: Fitch Clarifies Criteria for Make-Whole Amounts and Other Prepayment Obligations
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=504986 ]
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