Leverage Summary / Asset Coverage Ratios

NDP: Tortoise Energy Independence Fund, Inc.

As of 2/8/2019

Leverage Summary

Total leverage outstanding $38,500,000
Leverage as % of total assets 25.0%
Effective all-in cost of leverage 3.50%
Credit Facility Amount Amount Outstanding Non-use Rate Rate (1-month LIBOR + 0.80%) Maturity Date
$80,000,000 $38,500,000 0.20%* 3.30% 179 calendar-day rolling commitment
Total Debt $38,500,000      

*Non-use fees are waived when amount outstanding is at least $56,000,000.


Asset Coverage Ratios

  Ratio as of
1/31/2019 2/8/2019
Debt (300%) 411% 392%

NDP is required to have asset coverage of at least 300% with respect to senior securities (debt) at the time of a common stock distribution declaration and as of the end of each month.

View Historical Leverage Ratios


Leverage in the form of a credit facility is utilized within NDP to acquire additional portfolio investments consistent with its investment philosophy. The terms of the leverage are governed by regulatory and contractual asset coverage requirements that arise from the use of leverage.

Leverage costs consist of interest expense on the bank credit facility, including non-use fees.

Our policy is to utilize leverage in an amount that on average represents approximately 15% of our total assets. We consider market conditions at the time leverage is incurred and monitor for asset coverage ratios relative to 1940 Act requirements and our financial covenants on an ongoing basis. Leverage as a percent of total assets will vary depending on market conditions, but will normally range between 10% and 20%. The leverage ratio is impacted by increases or decreases in investment values, issuance of equity and/or the sale of securities when proceeds are used to reduce leverage.