KBRA Places Ratings of Outstanding Debt Issued by Tortoise Closed End Funds on Watch Developing
6 Dec 2024 | New York
KBRA has placed the ratings of the Senior Notes and Mandatory Redeemable Preferred Shares ("MRPS") issued by two closed-end funds, (i) Tortoise Energy Infrastructure Corp. ("TYG") and (ii) Tortoise Midstream Energy Fund, Inc. ("NTG" and together with TYG the "Funds") on Watch Developing. The Watch Placements of TYG and NTG are driven by the expected merger of these two funds as announced by Tortoise Capital Advisors ("Tortoise"). Both Funds are registered under the Investment Company Act of 1940 and are closed-end investment funds, advised by Tortoise.
TYG is a non-diversified fund established on February 24, 2004, and invests primarily in energy infrastructure companies that generate, transport and distribute electricity, as well as process, store, distribute and market natural gas, natural gas liquids, refined products and crude oil. TYG’s investment policy requires at least 90% of the TYG's total investments to be invested in securities of energy infrastructure companies.
NTG is a non-diversified investment fund established on July 27, 2010 and primarily invests in midstream energy entities that own and operate a network of pipeline and energy-related logistical infrastructure assets with an emphasis on those that transport, gather, process and store natural gas and natural gas liquids. NTG targets midstream energy entities, including master limited partnerships benefiting from U.S. natural gas production and global consumption expansion, with limited direct commodity exposure. NTG primarily focuses on natural gas infrastructure companies that are actively participating in the energy evolution including exporting low carbon gas and propane to allow developing markets to reduce their dependence on coal, transporting renewable natural gas and renewable diesel, and integrating renewable power into operations. At least 80% of NTG’s total investments are invested in equity securities of midstream energy entities.
The Watch Developing status on the Funds outstanding debt reflects uncertainty with respect to the ultimate asset and leverage profile of the combined Funds upon completion of the merger.
Senior Notes Ratings
- Tortoise Energy Infrastructure Corp. (Series L, AA, NN, KK, OO, PP and QQ)
- Tortoise Midstream Energy Fund, Inc. (Series Q, R and S)
Mandatory Redeemable Preferred Shares Ratings
- Tortoise Energy Infrastructure Corp. (Series E and F)
- Tortoise Midstream Energy Fund, Inc. (Series F and H)
To access ratings and relevant documents, click here.