LEAWOOD, Kan. -- November 5, 2018 -- (BUSINESS WIRE) -- TYG, NTG, TTP, NDP and TPZ declared the following distributions today:
% Change from
% Change from
|Tortoise Energy Infrastructure Corp.||TYG||$0.6550||-||-|
|Tortoise MLP Fund, Inc.||NTG||$0.4225||-||-|
|Tortoise Pipeline & Energy Fund, Inc.||TTP||$0.4075||-||-|
|Tortoise Energy Independence Fund, Inc.||NDP||$0.4375||-||-|
|Tortoise Power and Energy Infrastructure Fund, Inc.||TPZ||$0.1250||-||-|
The TYG, NTG, TTP and NDP quarterly distributions are payable on Nov. 30, 2018 to stockholders of record on Nov. 23, 2018.
The TPZ monthly distributions are payable on Dec. 31, 2018, Jan. 31, 2019 and Feb. 28, 2019 to stockholders of record on the respective dates of Dec. 24, 2018, Jan. 24, 2019 and Feb. 21, 2019.
“We are reaffirming the distribution levels for the funds as we continue to see strong fundamentals, increased distribution coverage and lower leverage metrics in the entities in which we invest,” said Brad Adams, CEO for Tortoise’s closed-end funds.
TYG and NTG Amended Investment Policies and NTG Name Change
The Board of Directors of Tortoise Energy Infrastructure Corp. (“TYG”) has approved an amendment to the Fund’s investment policy. Under the new policy, the Fund will invest at least 70% of its total assets in equity securities of MLPs and midstream entities. Currently, the Fund’s investment policy stipulates that at least 70% of its total assets be invested in equity securities of MLPs. The policy that the Fund invest at least 90% of its total assets (including assets obtained through leverage) in securities of energy infrastructure companies remains unchanged.
The Board of Directors of Tortoise MLP Fund, Inc. (“NTG”) has approved a change to the Fund’s name and an amendment to its investment policy both effective upon 60 days’ written notice to stockholders, which we expect to be on or about Jan. 7, 2019. The name of the Fund will be Tortoise Midstream Energy Fund, Inc. In addition, effective at the same time as the change in name, under the new policy, the Fund will invest at least 80% of its total assets in equity securities of midstream energy entities in the energy infrastructure sector, including MLPs, with at least 50% of its total assets in equity securities of natural gas infrastructure entities. Currently, the Fund’s investment policy stipulates that at least 80% of its total assets be invested in equity securities of MLPs.
The amendments to the investment policies for both funds and the name change of NTG will allow greater flexibility for the Funds to invest in midstream entities organized as C corporations and does not alter the investment thesis for the Funds. Ticker symbols and CUSIP numbers for the Funds will not change.
“We believe the evolution of the MLP landscape, with companies simplifying their structure by eliminating incentive distribution rights and through M&A activity, is good for the sector and will result in a more sustainable midstream model as these companies lower their cost of capital and align unitholder interests,” said Tortoise Portfolio Manager Matt Sallee. “These TYG and NTG investment policy updates reflect the structural changes occurring in the midstream energy sector and enable us to adapt to the market and focus on what’s in the best interests of our stockholders.”
2018 Tax Characterization Information
For tax purposes, we currently expect 80 to 100% of TYG’s 2018 distributions to be characterized as qualified dividend income (QDI), with the remainder, if any, as return of capital; 70 to 90% of NTG’s 2018 distributions to be characterized as QDI, with the remainder as return of capital; 0 to 10% of TTP’s 2018 distributions to be characterized as dividend income and capital gain, with the remainder as return of capital; 0 to 10% of NDP’s 2018 distributions to be characterized as dividend income and capital gain, with the remainder as return of capital and 70 to 80% of TPZ’s 2018 distributions to be characterized as dividend income and capital gain with the remainder as return of capital.
A final determination of the characterization will be made in January 2019 and you will receive a form 1099-DIV for each fund in which you are invested.
For book purposes, the source of distributions for TYG and NTG is estimated to be 100% return of capital, and the source of distributions for NDP is estimated to be approximately 75 to 85% ordinary income, with the remainder as return of capital.
You should not draw any conclusions about TTP’s or TPZ’s investment performance from the amount of these distributions or from the terms of TTP’s or TPZ’s distribution policy.
TTP and TPZ estimate that they have distributed more than their income and net realized capital gains; therefore, a portion of the distribution may be return of capital. A return of capital may occur, for example, when some or all of the money that you invested in TTP and TPZ is paid back to you. A return of capital distribution does not necessarily reflect TTP’s and TPZ’s investment performance and should not be confused with “yield” or “income.”
TTP and TPZ will report the sources for their distributions at the time of the payment in the applicable Section 19(a) Notice. The amounts and sources of distributions TTP and TPZ report are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon TTP’s and TPZ’s investment experience during the remainder of their fiscal years and may be subject to changes based on tax regulations.
Energy Value Chain Conference Call
Tortoise will host a conference call on Nov. 7, 2018 at 3 p.m. Central to discuss the energy sector and provide an update on the energy value chain and Tortoise’s investment outlook.
Toll Free Dial-In Number: (877) 407-9210
Replay Number: (877) 481-4010
Replay ID: #21460 (available through Dec. 7, 2018)
Tortoise specializes in essential assets and income. Tortoise invests in assets and services that serve essential needs in society and can also serve essential client needs, such as diversification and income. Tortoise’s energy investing expertise across the energy value chain, including infrastructure and MLPs, dates back more than 15 years. Through a variety of investment vehicles, Tortoise provides access to a wide range of client solutions, focused on their evolving needs. For more information, please visit www.tortoiseadvisors.com.
Tortoise Capital Advisors, L.L.C. (the “Adviser”) is the Adviser to the funds.
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.