Tortoise Closed-End Funds

Leverage Summary / Asset Coverage Ratios





 

TTP: Tortoise Pipeline & Energy Fund, Inc.

As of 6/16/2017

Leverage Summary

Total leverage outstanding $67,500,000
Leverage as % of total assets 25.0%
Effective all-in cost of leverage1

3.38%

1Includes non-use fees on the credit facility and excludes agent fees and amortization of debt issuance costs.

Debt

Notes Amount Type Interest Rate Maturity Date
Series C $6,000,000 Private 3.49% 12/15/2018
Series F $6,000,000 Private 3.01% 12/12/2020
Series D $16,000,000 Private 4.08% 12/15/2021
Series G $6,000,000 Private 2.00%* 12/12/2022
Total Notes $34,000,000      
 

*Floating Rate (3-month LIBOR + 1.05%).

Credit Facility Amount Amount Outstanding* Non-use Rate Rate (1-month
LIBOR + 1.125%)
Maturity Date
$35,000,000 $17,500,000 0.15% 2.34% 364 calendar-day rolling commitment
*Amount outstanding includes $7,000,000 that has a fixed rate of 2.03% through 6/30/2017.
Total Debt $51,500,000      

Mandatory Redeemable Preferred

Series Amount Type Fixed Distribution
Rate
Redemption Date
Series A $16,000,000 Private 4.29% 12/15/2018
Total Preferred $16,000,000      
 

Asset Coverage Ratios

  Ratio as of
5/31/2017 6/16/2017
Debt (300%) 540% 523%
Debt & Preferred (225%) 412% 399%

 

TTP is required to have an asset coverage of 300% with respect to senior securities (debt) and 225% with respect to preferred stock (including debt & preferred) at the time of a common stock distribution declaration and as of the end of each month.

Basic Maintenance Covenant Requirements

  Status as of
6/16/2017
Debt Passed
Debt & Preferred Passed

 

Basic maintenance covenants must be passed at the time of a common stock distribution declaration and as of the end of each week.

View Historical Leverage Ratios

 

Leverage in the form of senior notes, preferred stock and a revolving bank credit facility is utilized within TTP 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 senior notes and bank credit facility, including fees for unused portions of the bank credit facility and (2) distributions to preferred stockholders. In addition, TTP pays annual rating agency fees and fees and expenses associated with the issuance of leverage are capitalized and amortized over the term of the leverage.

Our policy is to utilize leverage in an amount that on average represents approximately 25 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 20 percent and 30 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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