Tortoise Closed-End Funds

Leverage Summary / Asset Coverage Ratios





 

TPZ: Tortoise Power and Energy Infrastructure Fund, Inc.

As of 10/13/2017

Leverage Summary

Total leverage outstanding $54,800,000
Leverage as % of total assets 25.8%
Effective all-in cost of leverage 2.16%
 
Credit Facility Amount Amount Outstanding Non-use Rate Rate (1-month
LIBOR + 0.80%)
Maturity Date
$60,000,000 $54,800,000 0.20%* 2.04% 179 calendar-day rolling commitment
Total Debt $54,800,000      

*Non-use fees are waived when amount outstanding is at least $42,000,000.

Interest Rate Swap Contracts

Notional Amount Maturity Date Fixed Rate Floating Rate
$6,000,000 08/06/2018 1.95% 3-month LIBOR
$6,000,000 11/29/2019 1.33% 3-month LIBOR
$3,000,000 08/06/2020 2.18% 3-month LIBOR
 

Asset Coverage Ratios

  Ratio as of
9/30/2017 10/13/2017
Debt (300%) 405% 387%

 

TPZ is required to have an asset coverage of 300% with respect to senior securities (debt) at the time of a common stock distribution declaration and as of the end of each month.

View Historical Leverage Ratios

Leverage in the form of a credit facility is utilized within TPZ 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: (1) interest expense on the credit facility, including non-use fees and (2) realized and unrealized gains or losses on interest rate swap settlements.

Our policy is to utilize leverage in an amount that on average represents approximately 20 percent of our total assets. We consider market conditions at the time leverage is incurred and monitor for asset coverage ratios relative to 1940 Act requirements and our financial covenants on an ongoing basis. Leverage as a percent of total assets will vary depending on market conditions, but will normally range between 15 percent and 25 percent. 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.


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