Tortoise Closed-End Funds

Leverage Summary / Asset Coverage Ratios





TYG: Tortoise Energy Infrastructure Corp.

As of 10/13/2017

               

Leverage Summary

Total leverage outstanding $714,000,000
Leverage as % of total assets 29.1%
Effective all-in cost of leverage1 3.49%

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

Debt

Notes Amount Type  Interest Rate Maturity Date
Series I $10,000,000 Private 4.35% 05/12/2018
Series X $12,500,000 Private 4.55% 06/15/2018
Series N $10,000,000 Private 3.15% 09/27/2018
Series CC $15,000,000 Private 3.48% 09/27/2019
Series J $15,000,000 Private 3.30% 12/19/2019
Series Y $12,500,000 Private 2.77% 06/14/2020
Series LL $20,000,000 Private 2.52%* 06/14/2020
Series O $15,000,000 Private 3.78% 09/27/2020
Series Z $12,500,000 Private 2.98% 06/14/2021
Series R $25,000,000 Private 3.77% 01/22/2022
Series DD $13,000,000 Private 4.21% 09/27/2022
Series II $10,000,000 Private 3.22% 12/18/2022
Series K $10,000,000 Private 3.87% 12/19/2022
Series S $10,000,000 Private 3.99% 01/22/2023
Series P $12,000,000 Private 4.39% 09/27/2023
Series FF $10,000,000 Private 4.16% 11/20/2023
Series JJ $20,000,000 Private 3.34% 12/18/2023
Series T $25,000,000 Private 4.16% 01/22/2024
Series L $20,000,000 Private 3.99% 12/19/2024
Series AA $10,000,000 Private 3.48% 06/14/2025
Series MM $30,000,000 Private 2.57%** 06/14/2025
Series NN $30,000,000 Private 3.20% 06/14/2025
Series KK $10,000,000 Private 3.53% 12/18/2025
Series OO $30,000,000 Private 3.27% 04/09/2026
Series PP $25,000,000 Private 3.33% 09/25/2027
Total Notes $412,500,000      
 



 *Floating Rate (3-month LIBOR + 1.20%).

**Floating Rate (3-month LIBOR + 1.25%).

Credit Facility Amount Amount Outstanding Non-use Rate Interest Rate Maturity Date
$130,000,000 $73,500,000 Tiered* 2.44%** 06/12/2019
$90,000,000 $63,000,000 0.15%*** 2.44%** 06/22/2018
Total Credit Facility $136,500,000      

*Non-use fees are tiered with a rate of 0.25% when amount outstanding is below $65,000,000 and 0.15% when amount outstanding is at least $65,000,000, but below $91,000,000. Fees are waived when amount outstanding is at least $91,000,000.

**Floating Rate (1-month LIBOR + 1.20%).

***Non-use fees are waived when amount outstanding is at least $63,000,000.

         
Total Debt $549,000,000      

Mandatory Redeemable Preferred

Series Amount Type Fixed Distribution
Rate
Redemption Date
Series D $85,000,000 Private 4.01% 12/17/2021
Series E $80,000,000 Private 4.34% 12/17/2024
Total Preferred $165,000,000      

Interest Rate Swap Contracts

Notional Amount Maturity Date Fixed Rate Floating Rate
$5,000,000 09/02/2018 1.815% 1-month LIBOR
$10,000,000 09/02/2021 2.381% 1-month LIBOR
 

Asset Coverage Ratios

  Ratio as of
9/30/2017 10/13/2017
Debt (300%) 381% 367%
Debt & Preferred (225%) 290% 282%

 

TYG 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
10/13/2017
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 revolving bank credit facilities is utilized within TYG 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 facilities, including fees for unused portions of the bank credit facilities, (2) distributions to preferred stockholders, and (3) realized and unrealized gains or losses on interest rate swap settlements. In addition, TYG 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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