Alternative form of preferred shares to replace remaining auction rate preferred shares
LEAWOOD, Kan. – Dec. 9, 2009 – Tortoise Energy Infrastructure Corp. (NYSE: TYG) today announced that it has priced the sale of 6,500,000 shares of Mandatory Redeemable Preferred (MRP) Shares at $10.00 per share. The company estimates that its net proceeds from this offering, after expenses, will be approximately $63.1 million. The company intends to use these net proceeds, along with funds borrowed from its credit facility, to redeem all $70 million of its outstanding auction rate preferred shares.
The MRP Shares are expected to trade on the New York Stock Exchange (NYSE) within 30 days of original issuance under the symbol "TYG Pr A". The MRP Shares are expected to be rated "AA" and "A1" by Fitch Ratings and Moody's Investor Services, Inc., respectively. The company has granted the underwriters a 30-day option to purchase a maximum of 975,000 additional MRP Shares to cover over-allotments, if any. The MRP Shares have a fixed dividend rate of 6.25 percent with a mandatory redemption on Dec. 31, 2019.
BofA Merrill Lynch and Wells Fargo Securities acted as joint book-running managers for the offering.
The offering is made pursuant to an existing effective shelf registration statement on Form N-2 previously filed with the Securities and Exchange Commission. The offering of these securities will be made only by means of a prospectus. A copy of the prospectus supplement and prospectus relating to the offering may be obtained from:
Banc of America Securities LLC, One Bryant Park, New York, New York 10036, and Wells Fargo Securities, LLC, 301 South College Street, Charlotte, North Carolina 28288.
About Tortoise Energy Infrastructure Corp.
Tortoise Energy Infrastructure Corp. owns a portfolio of master limited partnership investments in the energy infrastructure sector. Tortoise Energy Infrastructure Corp.'s goal is to provide its stockholders a high level of total return with an emphasis on current distributions.
About Tortoise Capital Advisors, LLC
Tortoise is an investment manager specializing in listed energy infrastructure, such as pipeline and power companies. As of Oct. 31, 2009, Tortoise had approximately $2.5 billion of assets under management in five NYSE-listed investment companies and private accounts. For more information, visit our Web site at www.tortoiseadvisors.com.
Safe Harbor Statement
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
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 company 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 company's reports that are filed with the Securities and Exchange Commission. 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 company and Tortoise Capital Advisors do not assume a duty to update this forward-looking statement.
Contact information: Tortoise Capital Advisors, LLC Pam Kearney, Investor Relations, (866) 362-9331, firstname.lastname@example.org