November 15, 2005 (Overland Park, KS) Tortoise Energy Capital Corporation (NYSE: TYY) announced today that it has successfully completed an offering of an aggregate principal amount of $120 million of Auction Rate Senior Notes, Series A and B ("Tortoise Notes"). The Tortoise Notes are rated 'Aaa' and 'AAA' by Moody's Investors Service Inc. and Fitch Ratings, respectively, and were issued in denominations of $25,000. Lehman Brothers Inc. acted as lead manager, and Stifel Nicolaus & Company, Incorporated, A.G. Edwards, Oppenheimer & Co. and Wachovia Securities also participated as co-managers for the offering. A copy of the final Prospectus relating to this offering may be obtained from the offices of Lehman Brothers Inc., 745 Seventh Avenue, New York, New York 10019; Stifel, Nicolaus & Company, Incorporated, 501 North Broadway, St. Louis, Missouri 63102; A.G. Edwards & Sons, Inc., One North Jefferson, St. Louis, Missouri 63103; Oppenheimer & Co., Inc., 125 Broad Street, New York, New York 10004; and Wachovia Capital Markets, Inc., 301 South College Street, Charlotte, NC 28288. Tortoise Notes may only be bought or sold through auction or in a secondary market maintained by certain broker-dealers.
The company intends to use the net proceeds of this offering to fully repay all outstanding indebtedness under the company's secured revolving credit facility and to invest the remaining net proceeds of this offering in accordance with its investment objectives and policies. Additionally, Tortoise Capital intends to enter into interest rate risk management contracts in order to hedge its borrowing costs for the Tortoise Notes. Following the issuance of the Tortoise Notes, total assets of Tortoise Energy Capital Corporation will be approximately $523 million.
About Tortoise Capital
Tortoise Energy Capital Corporation's investment objective is to provide its stockholders with a high level of total return with an emphasis on current distributions paid to stockholders. Tortoise Capital provides financing primarily for master limited partnerships and their affiliates in the energy infrastructure sector which engage in the business of gathering, transporting, processing, storing, distributing or marketing natural gas, natural gas liquids, coal, crude oil, refined petroleum products or other natural resources, or exploring, developing, managing or producing such commodities.
Tortoise Capital Advisors, L.L.C. serves as the adviser to Tortoise Energy Capital Corporation.
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.
Tortoise Capital Advisors, L.L.C.
Investor Relations, 913-981-1020