Leverage Summary / Asset Coverage Ratios


TTP: Tortoise Pipeline & Energy Fund, Inc.

As of 11/30/2018

Leverage Summary

Total leverage outstanding $69,800,000
Leverage as % of total assets 29.7%
Effective all-in cost of leverage1


1Includes non-use fees on the credit facility and excludes agent fees and amortization of debt issuance costs.


Notes Amount Type Interest Rate Maturity Date
Series C $6,000,000 Private 3.49% 12/15/2018
Series F $6,000,000 Private 3.01% 12/12/2020
Series D $16,000,000 Private 4.08% 12/15/2021
Series G $6,000,000 Private 3.38%* 12/12/2022
Total Notes $34,000,000      

*Floating Rate (3-month LIBOR + 1.05%).

Credit Facility Amount Amount Outstanding Non-use Rate Rate (1-month
LIBOR + 1.125%)
Maturity Date
$35,000,000 $19,800,000 0.15% 3.47% 364 calendar-day rolling commitment
Total Debt $53,800,000    

Mandatory Redeemable Preferred

Series Amount Type Fixed Distribution
Redemption Date
Series A $16,000,000 Private 4.29% 12/15/2018
Total Preferred $16,000,000      

Asset Coverage Ratios

  Ratio as of
10/31/2018 11/30/2018
Debt (300%) 441% 433%
Debt & Preferred (225%) 341% 334%


TTP is required to have an asset coverage of 300% with respect to senior securities (debt) and 225% with respect to preferred stock (including debt & preferred) at the time of a common stock distribution declaration and as of the end of each month.

Basic Maintenance Covenant Requirements

  Status as of
Debt Passed
Debt & Preferred Passed


Basic maintenance covenants must be passed at the time of a common stock distribution declaration and as of the end of each week.

View Historical Leverage Ratios


Leverage in the form of senior notes, preferred stock and a revolving bank credit facility is utilized within TTP to acquire additional portfolio investments consistent with its investment philosophy. The terms of the leverage are governed by regulatory and contractual asset coverage requirements that arise from the use of leverage.

Leverage costs consist of: (1) interest expense on the senior notes and bank credit facility, including fees for unused portions of the bank credit facility and (2) distributions to preferred stockholders. In addition, TTP pays annual rating agency fees and fees and expenses associated with the issuance of leverage are capitalized and amortized over the term of the leverage.

Our policy is to utilize leverage in an amount that on average represents approximately 25% of our total assets. We consider market conditions at the time leverage is incurred and monitor for asset coverage ratios relative to 1940 Act requirements and our financial covenants on an ongoing basis. Leverage as a percent of total assets will vary depending on market conditions, but will normally range between 20% and 30%. The leverage ratio is impacted by increases or decreases in investment values, issuance of equity and/or the sale of securities when proceeds are used to reduce leverage.