Profile: Tortoise Energy Capital Corp (TYY.N)
18 Dec 2013
Tortoise Energy Capital Corporation (Tortoise Capital) is a non-diversified, closed-end management investment company. The Company's investment objective is to provide a high level of total return. It invests primarily in equity securities of master limited partnerships (MLPs) operating in the energy infrastructure sector. Energy infrastructure MLPs are engaged in the transportation, storage and processing of crude oil, natural gas and refined products from production points to the end users. The Company's investments are primarily in mid-stream (mostly pipeline) operations. It invests solely in energy infrastructure companies operating in the United States. Tortoise Capital's investment advisor is Tortoise Capital Advisors, L.L.C.
The Company invests primarily in MLPs through private and public market purchases. Its private purchases principally involve providing financing directly to an MLP through equity investments, which it refers to as direct placements. MLPs typically use this financing to fund growth, acquisitions, recapitalizations, debt repayments and bridge financings. It generally invests in companies that are publicly reporting, but for which private financing offers advantages. Tortoise Capital invests at least 80% of its total assets in equity securities of MLPs and affiliates in the energy infrastructure sector. It may invest up to 50% of its total assets in restricted securities. It may invest up to 20% of total assets in debt securities of energy infrastructure companies, including securities rated below non-investment grade (commonly referred to as junk bonds). Tortoise Capital will not invest more than 15% of total assets in any single issuer.
Tortoise Capital invests in energy infrastructure MLPs, such as pipeline MLPs, processing MLPs, propane MLPs and coal MLPs. The Company invests primarily in equity securities of MLPs, which include instruments, such as common units, convertible subordinated units and I-Shares. Most of the MLP common units and I-Shares in which Tortoise Capital invests are listed and traded on the NYSE, AMEX or NASDAQ. Tortoise Capital also may purchase MLP common units through direct placements that are not initially readily tradable. MLP convertible subordinated units are not listed or publicly traded, and are typically purchased in direct transactions with MLP affiliates or institutional holders of such shares.
Tortoise Energy Capital Corp
Suite 300, 11550 Ash Street
LEAWOOD KS 66211