OVERLAND
PARK, Kan., Sept. 5,
2024 /PRNewswire/ -- Tortoise Capital Advisors,
L.L.C., a fund manager focused on traditional energy and power
infrastructure investing, today announced plans to merge two of its
closed-end funds.
The board of directors of each of Tortoise Midstream Energy
Fund, Inc. (NYSE: NTG) and Tortoise Energy Infrastructure Corp.
(NYSE: TYG) have approved the merger of NTG into TYG, with TYG as
the surviving company. TYG invests in energy infrastructure
companies and is positioned to benefit from growing energy demand
and accelerated efforts to reduce global CO2 emissions from energy
consumption. The combined assets of the two funds, including
leverage, totaled $914.4 million as
of Aug. 31, 2024. Tortoise Capital
Advisors, the manager of NTG and TYG, would continue to manage the
combined fund with the same investment team. Subject to and upon
completion of the merger, the board of TYG also approved a 40%
increase in distributions, which will be paid monthly versus
quarterly.
In addition, Tortoise Capital intends to conduct a strategic
review of the investment strategy of its closed-end fund Ecofin
Sustainable and Social Impact Term Fund (NYSE: TEAF), including the
impact of blending private and public investments in a closed-end
fund. TEAF provides investors access to a combination of public and
private investments in essential assets. TEAF had total assets,
including leverage, of $229.0 million
as of Aug. 31, 2024.
"As part of our product restructuring, we are evaluating our
entire fund lineup and are making changes that are in the best
interest of fund shareholders," said Tom
Florence, CEO of Tortoise Capital Advisors. "We have been
disappointed with TEAF's performance and its discount to NAV and
aim to correct the issue."
Tortoise Capital intends to complete the merger of NTG into TYG
during the fourth quarter of 2024, subject to requisite fund
shareholder and regulatory approvals.
Last month, Tortoise Capital announced plans to merge three of
its closed-end funds into a newly formed actively managed
exchange-traded fund (ETF), Tortoise Power and Energy
Infrastructure ETF. In July the company announced a strategic
restructuring including the sale of its Ecofin Advisors Limited
business and its private credit business to focus on traditional
energy and power infrastructure investing. The sale of the private
credit business to 503 Capital Partners, LLC was completed on
July 31, 2024 and the sale of Ecofin
Advisors Limited is expected to close on Sept. 30, 2024.
About Tortoise Capital
With approximately $8 billion in assets under management as of
July 31, 2024, Tortoise Capital's
record of investment experience and research dates back more than
20 years. As an early investor in midstream energy, Tortoise
Capital believes it is well-positioned to be at the forefront of
the global energy evolution that is under way. Based in
Overland Park, Kansas, Tortoise
Capital Advisors, L.L.C. is an SEC-registered fund manager that
invests primarily in publicly traded companies in the energy and
power infrastructure sectors—from production to transportation to
distribution. For more information about Tortoise Capital,
visit www.TortoiseAdvisors.com.
Cautionary Statement Regarding Forward-Looking
Statements
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 funds 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 fund's reports that are
filed with the Securities and Exchange Commission (SEC). 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 funds and Tortoise Capital Advisors do not
assume a duty to update this forward-looking statement.
IMPORTANT INFORMATION
In connection with the proposed
merger discussed in this press release, NTG and TYG expect to file
with the SEC solicitation materials in the form of a joint proxy
statement/prospectus that will be included in a registration
statement on Form N-14. After the registration statement is filed
with the SEC, it may be amended or withdrawn, and the joint proxy
statement/prospectus will not be distributed to fund shareholders
unless and until the registration statement is declared effective
by the SEC. Investors are urged to read the joint proxy
statement/prospectus and any other relevant documents when they
become available because they will contain important information
about the proposed merger. Once filed, copies of the joint proxy
statement/prospectus and other materials will be available free of
charge on the SEC's website at www.sec.gov.
This press release is for informational purposes only and is not
a solicitation of a proxy from any fund shareholder and does not
constitute an offer of any securities for sale. No offer of
securities will be made except pursuant to a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933. However,
Tortoise Capital Advisors, NTG, TYG and certain of their respective
directors, officers and affiliates may be deemed under the rules of
the SEC to be participants in the solicitation of proxies from fund
shareholders in connection with the proposed merger discussed in
this press release. Information about the directors and officers of
NTG and TYG may be found in their annual reports previously filed
with the SEC.
Tortoise Capital Advisors, L.L.C. is the investment adviser to
Tortoise Energy Infrastructure Corp. (TYG), Tortoise Midstream
Energy Fund, Inc. (NTG), and Ecofin Sustainable and Social Impact
Term Fund (TEAF) with Ecofin Advisors Limited as TEAF's
sub-adviser.
The annual and semi-annual reports of NTG, TYG and TEAF and
other regulatory filings with the SEC are accessible at www.sec.gov
and at https://cef.tortoiseadvisors.com/. The information contained
on the funds' website is not a part of this press release.
Media Contacts:
Margaret Kirch
Cohen/Richard Chimberg
Newton Park PR
+1 847-507-2229
+1 617-312-4281
margaret@newtonparkpr.com
rich@newtonparkpr.com
View original
content:https://www.prnewswire.com/news-releases/tortoise-capital-plans-merger-of-two-closed-end-funds-and-strategic-review-of-ecofin-sustainable-and-social-impact-term-fund-302238839.html
SOURCE Tortoise Capital
