TEAF in Focus

Fund name

Tortoise Essential Assets Income Term Fund

Description

Fund seeks to provide access to a portfolio of differentiated income generating public and direct investments of essential asset companies1


Structure

Non-diversified, closed-end management investment company with limited term2


Investment adviser

Tortoise Capital Advisors, L.L.C.

Investment Objective

High level of total return with emphasis on current distributions

Investment parameters

At least 80% of total assets in issuers operating in essential asset sectors

  • Up to 40% in directly originated loans
  • Up to 25% in direct investments in restricted equity securities in listed
    companies
  • Up to 25% in direct equity investments in unlisted companies
  • Up to 30% in non-U.S. issuers, including Canadian

Ticker

TEAF

Offer price/NAV

$20.00 per share (Fund price/share = Initial Fund NAV)

Sales Load

No sales load. Tortoise has agreed to pay 100% of load expenses, including underwriting and dealer commissions

Offering expenses3

None. Tortoise has agreed to pay all offering expenses. The fund is not obligated to repay these expenses to the adviser

Offering size cap

Given portfolio construct, offering size will be capped at $500 million

Key dates

  • Anticipated offering period: February 19 – March 26, 2019
  • Anticipated first trading day: March 27, 2019
  • Anticipated settlement date: March 29, 2019

All anticipated dates are subject to change

1 The fund’s investment portfolio generally will be comprised of direct investments, listed equity securities and corporate debt securities of issuers operating in essential asset sectors. The fund considers essential assets to be assets and services that are indispensable to the economy and society. Essential asset sectors include the education, housing, healthcare, social and human services, power, water, energy, infrastructure, basic materials, industrial, transportation and telecommunications sectors. The fund may invest across all levels of an issuer’s capital structure and emphasize income-generating investments, particularly in social infrastructure, sustainable infrastructure and energy infrastructure. See the “Investment Objective and Principal Investment Strategies” section of the preliminary prospectus for information on the fund’s investments. The fund’s investments in corporate debt securities and social infrastructure direct origination loans will have an initial emphasis on high yield debt securities or the unrated equivalent. High yield debt securities, commonly referred to as “junk” bonds, are debt securities rated below investment grade (i.e., BB+/Ba1 or lower) or unrated securities that the advisor deems to be of comparable quality. These securities are considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments. See “High Yield Securities Risks” in the fund’s preliminary prospectus.

2 The fund will have a limited period of existence and shall dissolve as of the close of business 12 years from the effective date of its initial registration statement (such date, including any extension, the “Termination Date”); provided, that the Board of Trustees (the “Board”) may vote to extend the Termination Date (1) for one period that may in no event exceed one year following the Termination Date, and (2) for one additional period that may in no event exceed one year, in each case without a vote of shareholders. Notwithstanding the foregoing, if the Board determines to cause the fund to conduct an Eligible Tender Offer and the Eligible Tender Offer is completed, the Board may, in its sole discretion and without any action by the shareholders of the fund, eliminate the Termination Date and provide for the fund’s perpetual existence.

3 See the “Summary of Fund Expenses” section of the preliminary prospectus for information on the fees, charges and expenses associated with investing in the fund.


Resources

Tortoise
Essential Assets
Income Term Fund

NYSE: TEAF

For more information, please contact us at
(888) 870-3088

Investors should consider the Fund’s investment objective, risks, fees and expenses carefully before investing. The preliminary prospectus, which contains this and other information about the Fund, should be read carefully before investing. 

This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives and circumstances of any particular investors, or suggest any specific course of action, Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.

A preliminary prospectus may also be obtained by calling 888-870-3088. Once the Fund’s registration statement is effective and prior to investing, you should review a final prospectus and should again consider the Fund’s investment objective, risks, fees and expenses carefully before investing. The final prospectus contains this and other information about the Fund. Read the final prospectus carefully before investing. To obtain a copy of the final prospectus when available, call 888-870-3088.

The information regarding the Fund contained on this website is not complete and may be changed. A registration statement relating to the Fund’s securities has been filed with the Securities and Exchange Commission, but has not yet become effective. We may not sell the Fund’s securities until the registration statement filed with the Securities and Exchange Commission is effective. Neither this website nor the Fund’s preliminary prospectus is an offer to sell the Fund’s securities or is soliciting an offer to buy the Fund’s securities in any jurisdiction where the offer or sale is not permitted.

The fund is offering its shares through a group of underwriters including Morgan Stanley, BofA Merrill Lynch, UBS Investment Bank and Wells Fargo Securities. The lead underwriters are not affiliated with Tortoise Capital Advisors, L.L.C.

For more information and a prospectus contact your financial advisor or call Toll-Free 888-870-3088.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE