OVERLAND
PARK, Kan., Dec. 5, 2024
/PRNewswire/ -- Tortoise Capital Advisors, L.L.C.
(Tortoise Capital), a fund manager focused on energy investing,
today announced it received shareholder approval of two strategic
fund merger proposals involving closed-end funds and the conversion
to an actively managed ETF. These changes align with the firm's
commitment to providing innovative investment solutions that are
intended to enhance shareholder value and operational efficiency.
Subject to the satisfaction of certain customary closing
conditions, Tortoise Capital expects the mergers and ETF conversion
to become effective, and trading of the merged funds will cease,
before the market opens on Dec. 23,
2024.
Tortoise Midstream Energy Fund, Inc. (NYSE: NTG) and Tortoise
Energy Infrastructure Corp. (NYSE: TYG) will merge, with TYG
emerging as the continuing fund, with combined total assets under
management (AUM) on a pro forma basis of $1.1 billion as of Nov.
29, 2024. TYG will retain its original investment strategy
and objective, becoming Tortoise Capital's flagship closed-end fund
solution for investors seeking this structure.
Tortoise Capital is announcing a change in the frequency of TYG
distributions from quarterly to monthly. The monthly distribution
declared by TYG will be $0.365 per
share, which represents a 40% increase. The distributions are
payable on Dec. 31, 2024,
Jan. 31, 2025, and Feb. 28, 2025, to shareholders of record on the
respective dates of Dec. 24, 2024,
Jan. 24, 2025, and Feb. 21, 2025. The source of distributions is
estimated to be approximately 0% to 20% ordinary income, with the
remainder as return of capital. NTG's final distribution of
$0.53 per share is payable on
Dec. 13, 2024 to shareholders of
record on Dec. 6, 2024.
Additionally, Tortoise Power and Energy Infrastructure Fund,
Inc. (NYSE: TPZ), Tortoise Pipeline & Energy Fund, Inc.
(NYSE: TTP), and Tortoise Energy Independence Fund, Inc. (NYSE:
NDP), will each merge with a newly formed series of an actively
managed ETF, with TPZ as the surviving strategy. The ETF will
adopt TPZ's prior closed-end fund accounting and performance
history. The ETF will maintain TPZ's focus on uncovering high
quality opportunities and capture growth in the energy sector while
providing a high level of current income and access to the U.S.
energy sector. The combined assets of the three funds transitioning
to the ETF, including leverage, totaled $358
million on a pro forma basis as of Nov. 29, 2024. TTP's and NDP's final
distributions of $0.175 and
$0.255 per share, respectively, are
payable on Dec. 13, 2024 to
shareholders of record on Dec. 6,
2024.
The mergers of the closed-end funds and the ETF conversion were
previously approved by the funds' board of directors.
"These strategic initiatives reflect our commitment to
delivering value and flexibility to our shareholders. By merging
TYG and NTG, we are solidifying TYG as our flagship closed-end fund
solution for long-term investors," said Tom
Florence, CEO of Tortoise Capital. "Simultaneously, the
merger and conversion of TPZ, TTP, and NDP into an actively managed
ETF provides a modernized structure that enhances liquidity,
reduces inefficiencies, and offers access to high-quality
opportunities in the energy sector."
He added, "These actions also align with the board's continued
commitment to shareholder value through thoughtful initiatives
tailored to modern demands."
About Tortoise Capital
With approximately
$8.8 billion in assets under
management as of Oct. 31, 2024,
Tortoise Capital's record of investment experience and research
dates back more than 20 years. As an early investor in midstream
energy, Tortoise Capital believes it is well-positioned to be at
the forefront of the global energy evolution that is under way.
Based in Overland Park, Kansas,
Tortoise Capital Advisors, L.L.C. is an SEC-registered fund manager
that invests primarily in publicly traded companies in the energy
and power infrastructure sectors—from production to transportation
to distribution. For more information about Tortoise Capital,
visit www.tortoiseadvisors.com.
Cautionary Statement Regarding Forward-Looking
Statements
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 funds 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 fund's reports that are
filed with the Securities and Exchange Commission (SEC). 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 funds and Tortoise Capital Advisors do not
assume a duty to update this forward-looking statement.
IMPORTANT INFORMATION
Tortoise Capital Advisors, L.L.C. is the investment adviser to
Tortoise Energy Infrastructure Corp. (TYG), Tortoise Midstream
Energy Fund, Inc. (NTG), Tortoise Power and Energy Infrastructure
Fund, Inc. (TPZ), Tortoise Pipeline & Energy Fund, Inc. (TTP),
and Tortoise Energy Independence Fund, Inc. (NDP).
Media Contacts:
Margaret Kirch
Cohen/Richard Chimberg
Newton Park PR
+1 847-507-2229
+1 617-312-4281
margaret@newtonparkpr.com
rich@newtonparkpr.com
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SOURCE Tortoise Capital