Leverage Summary / Asset Coverage Ratios

NTG: Tortoise Midstream Energy Fund, Inc.

As of 3/15/2019

Leverage Summary

Total leverage outstanding $522,400,000
Leverage as % of total assets 33.9%
Effective all-in cost of leverage1 3.93%

1Includes non-use fees on the credit facility and excludes agent fees and amortization of debt issuance costs.


Notes Amount Type Interest
Maturity Date
Series K $35,000,000 Private 3.90%* 09/09/2019
Series D $112,000,000 Private 4.29% 12/15/2020
Series J $30,000,000 Private 3.72% 04/17/2021
Series L $20,000,000 Private 4.22%** 04/17/2021
Series M $10,000,000 Private 3.06% 04/17/2021
Series N $32,000,000 Private 3.18% 12/13/2024
Series O $25,000,000 Private 3.47% 12/13/2027
Series P $20,000,000 Private 3.79% 10/16/2023
Series Q $15,000,000 Private 3.97% 10/16/2025
Series R $13,000,000 Private 4.02% 10/16/2026
Total Notes $312,000,000      

*Floating Rate (3-month LIBOR + 1.30%).

**Floating Rate (3-month LIBOR + 1.45%).

Credit Facility Amount Amount Outstanding Non-use Rate Rate (1-month
LIBOR + 1.20%)
Maturity Date
$120,000,000 $78,400,000 Tiered* 3.68% 06/12/2019
Total Debt $390,400,000      

*Non-use fees are tiered with a rate of 0.25% when amount outstanding is below $60,000,000 and 0.15% when amount outstanding is at least $60,000,000, but below $84,000,000. Fees are waived when amount outstanding is at least $84,000,000.

Mandatory Redeemable Preferred

Series Amount Type Fixed Distribution
Redemption Date
Series C $5,000,000 Private 3.73% 12/08/2020
Series D $40,000,000 Private 4.19% 12/08/2022
Series E $40,000,000 Private 3.78% 12/13/2024
Series F $25,000,000 Private 4.07% 12/13/2027
Series G $22,000,000 Private 4.39% 10/16/2023
Total Preferred $132,000,000      

Asset Coverage Ratios

  Ratio as of
2/28/2019 3/15/2019
Debt (300%) 366% 372%
Debt & Preferred (225%) 273% 278%

NTG is required to have asset coverage of at least 300% with respect to senior securities (debt) and 225% with respect to preferred stock (including debt & preferred) at the time of a common stock distribution declaration and as of the end of each month.

Basic Maintenance Covenant Requirements

  Status as of
Debt Passed
Debt & Preferred Passed

Basic maintenance covenants must be passed at the time of a common stock distribution declaration and as of the end of each week.

View Historical Leverage Ratios


Leverage in the form of senior notes, preferred stock and a revolving bank credit facility is utilized within NTG 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: (1) interest expense on the senior notes and bank credit facility, including fees for unused portions of the bank credit facility and (2) distributions to preferred stockholders. In addition, NTG pays annual rating agency fees and fees and expenses associated with the issuance of leverage are capitalized and amortized over the term of the leverage.

Our policy is to utilize leverage in an amount that on average represents approximately 25% 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 20% and 30%. 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.