Tortoise Closed-End Funds

Leverage Summary / Asset Coverage Ratios





 

TPZ: Tortoise Power and Energy Infrastructure Fund, Inc.

As of 4/21/2017

Leverage Summary

Total leverage outstanding $51,700,000
Leverage as % of total assets 23.4%
Effective all-in cost of leverage 2.09%
 
Credit Facility Amount Amount Outstanding Non-use Rate Rate (1-month
LIBOR + 0.80%)
Maturity Date
$60,000,000 $51,700,000 0.20%* 1.79% 179 calendar-day rolling commitment
Total Debt $51,700,000      

*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 08/07/2017 1.89% 3-month LIBOR
$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
3/31/2017 4/21/2017
Debt (300%) 432% 424%

 

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.

TPZ has a long-term target level of leverage of 20% of total assets. Temporary increases to up to 25% 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.


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