LEAWOOD, Kan. – Nov. 05, 2008 –Tortoise North American Energy Corp. (NYSE: TYN) today announced the redemption of $15 million of its $45 million in Senior Notes using cash generated from the sale of Canadian Royalty and Income Trusts (RITs). Following the redemption, TYN's asset coverage ratio under the Investment Company Act of 1940 (the 1940 Act) with respect to debt was 358 percent, and its coverage ratio for total leverage (debt and preferred) was 269 percent. In order to pay distributions to common stockholders, the 1940 Act requires that the company have a minimum debt coverage ratio of 300 percent and a minimum total leverage (debt and preferred) coverage ratio of 200 percent, respectively.
"By selling Canadian Royalty and Income Trusts, we've built a cash position that allowed us to reduce debt, improve our leverage coverage ratios and be positioned to take advantage of attractive investment opportunities," said Tortoise North American Energy Corp.'s President, Rob Thummel.
As a result of selling Canadian RITs, TYN no longer holds a majority of foreign assets. If the company does not hold a majority of foreign assets on Nov. 30, 2008, TYN stockholders will not receive a foreign source income tax credit for the 2008 tax year. Also, by selling portfolio holdings, including Canadian RITs, a portion of fiscal year 2008 distributions are expected to be treated as return of capital for income tax purposes, although the ultimate determination will not be made until calculation of earnings and profits after year-end.
About Tortoise North American Energy Corp.
Tortoise North American Energy Corp.'s goal is to provide its stockholders with a high level of total return with an emphasis on current distributions.
About Tortoise Capital Advisors
Tortoise Capital Advisors, LLC is a pioneer in capital markets for master limited partnership (MLP) investment companies and a leader in closed-end funds and separately managed accounts focused on MLPs in the energy sector. As of Oct. 31, 2008, the adviser had approximately $2.0 billion of assets under management. 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 funds' 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.
Contact information: Tortoise Capital Advisors, LLC Pam Kearney, Investor Relations, (866) 362-9331, firstname.lastname@example.org