Leverage Summary / Asset Coverage Ratios
NDP: Tortoise Energy Independence Fund, Inc.
As of 4/21/2017
*Non-use fees are waived when amount outstanding is at least $56,000,000.
Asset Coverage Ratios
Leverage in the form of a credit facility is utilized within NDP 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 interest expense on the bank credit facility, including non-use fees.
NDP has a long-term target level of leverage of 10% to 15% of total assets. Temporary increases to up to 20% of total assets may be permitted, provided that such leverage is consistent with the limits set forth in the 1940 Act, and that such leverage is expected to be reduced over time in an orderly fashion to reach the long-term target. 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.