LEAWOOD, Kan.--Feb. 3, 2011--(BUSINESS WIRE)-- Tortoise Energy Capital Corp. (NYSE: TYY) today announced that it has priced the sale of 5,000,000 of its 5 percent Series B Mandatory Redeemable Preferred (MRP B) Shares at $10.00 per share. The company estimates that its net proceeds from this offering, after expenses, will be approximately $49 million. The company intends to use net proceeds of this offering to redeem all $45 million of its outstanding 5.60 percent Mandatory Redeemable Preferred shares and may use the remaining proceeds to repay short-term debt outstanding under its credit facility, to invest in energy infrastructure companies in accordance with its investment objective and policies or for working capital purposes.
The MRP B Shares are expected to trade on the New York Stock Exchange (NYSE) within 30 days of original issuance under the symbol "TYY Pr B". The MRP B Shares are expected to be rated "AA" by Fitch Ratings. The MRP B Shares have a fixed dividend rate of 5 percent with a mandatory redemption on March 1, 2018.
Wells Fargo Securities acted as Sole Structuring Manager and Book Runner for the offering.
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 Wells Fargo Securities, LLC at 1525 West W.T. Harris Boulevard, NC0675, Charlotte, N.C. 28262. Attention: Syndicate Operations or by calling toll-free at (800) 326-5897.
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 investments, such as pipeline and power companies. As of Dec. 31, 2010, the adviser had approximately $6.1 billion of assets under management in six 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.
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.
Tortoise Capital Advisors, LLC
Pam Kearney, 866-362-9331
Source: Tortoise Energy Capital Corp.