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- \nTTP and NDP update following termination of proposed merger<\/p>\n
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- \nTTP increases and NDP reinstates quarterly distributions\n<\/li>\n
- \nBoth funds adopt a managed distribution policy\n<\/li>\n
- \nOperating expenses capped through expense reimbursement\n<\/li>\n<\/ul>\n<\/li>\n
- \nTPZ adopts a managed distribution policy and increases distribution\n<\/li>\n
- \nTYG and NTG increase distributions for third consecutive quarter\n<\/li>\n<\/ul>\n
OVERLAND PARK, KS–(BUSINESS WIRE<\/a>)–TortoiseEcofin<\/a> and the Board of the closed-end funds announce several actions to improve shareholder value for its closed-end funds:\n<\/p>\n
\nTortoise Energy Infrastructure Corp. (NYSE: TYG)
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Tortoise Midstream Energy Fund, Inc. (NYSE: NTG)
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Tortoise Pipeline & Energy Fund, Inc. (NYSE: TTP)
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Tortoise Energy Independence Fund, Inc. (NYSE: NDP)
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Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE: TPZ)
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Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF)\n<\/p>\nTTP and NDP Status Update <\/b><\/p>\n
\nFollowing the proposal to merge the two funds, management and the Board concluded that TTP and NDP will remain separate funds, each continuing to be managed under their existing strategies.\n<\/p>\n
\nNDP invests primarily in North American energy companies that engage in exploration and production of crude oil, natural gas and related essential commodities, while TTP invests primarily in pipeline companies that transport these products. The management team and the Board maintain full conviction in the energy sector and believe it will continue to be essential to our everyday needs. They also believe that the companies in which the funds invest will meaningfully contribute in the energy transition with new projects and by repurposing existing assets to support cleaner energy sources. Learn more from the portfolio managers in these short videos: TTP<\/a>, NDP<\/a>.\n<\/p>\n
\nThe Board also approved an increase to TTP\u2019s quarterly distribution by 131.3% and to reinstate a quarterly distribution for NDP. Additionally, TTP and NDP adopted managed distribution policies resulting in a NAV-based distribution, similar to the NAV-based distribution policies previously announced for TYG and NTG. The annualized distribution rate will be reviewed on a semi-annual basis in February and August each year and is expected to equal at least 6% of the average NAV per share for the previous fiscal semi-annual period.\n<\/p>\n
\nNAV-based distributions align with the goal of maximizing NAV and provides the portfolio management team the flexibility to own investments with the most compelling total return potential. This formulaic and disciplined approach decouples distribution decisions from distributable cash flow and tracks NAV performance. Net cash flow not distributed can be used to fund share repurchases, reinvest in portfolio securities or reduce leverage.\n<\/p>\n
\nTortoise Capital Advisors, L.L.C., the adviser to TTP and NDP, has voluntarily agreed, effective September 1, 2021, to reimburse each fund for their Operating Expenses in order to ensure that Operating Expenses do not exceed 1.35% of average daily managed assets for each fund. In its sole discretion and at any time, the funds\u2019 adviser may elect to extend, terminate or modify its temporary expense reimbursement upon written notice.\n<\/p>\n
TPZ Distribution<\/b><\/p>\n
\nThe Board approved the adoption of a managed distribution policy and an increase of 20.0% to the monthly distribution for TPZ. The annualized distribution rate will be reviewed on a semi-annual basis in February and August each year and is expected to equal at least 5% of the average NAV per share for the previous fiscal semi-annual period.\n<\/p>\n
TYG and NTG Distributions Increase<\/b><\/p>\n
\nIn line with the funds\u2019 NAV-based distribution polices that were introduced in July 2020 with the goal of maximizing NAV, the Board approved an increase to TYG and NTG distributions for the third consecutive quarter. TYG and NTG quarterly distributions for the third fiscal quarter increased by 7.4% and 6.9%, respectively. Distribution amounts are generally expected to fall in the range of 5% to 7% of trailing average NAV. Net cash flow not distributed can be used to fund share repurchases, reinvest in portfolio securities or reduce leverage.\n<\/p>\n
\nTEAF will maintain its current distribution and the Board will review once the fund achieves its long-term portfolio allocation targets.\n<\/p>\n
Distributions Amounts and Dates<\/b><\/p>\n
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