Amended - Fitch Rates Tortoise Energy Infrastructure Corp's Preferred Shares 'AA'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- (This is an amendment to the release that went out on Aug. 20, 2007; it provides the effective date for the deal, at the end of the release.) Tortoise Energy Infrastructure Corporation's (NYSE NYSE See: New York Stock Exchange : TYG TYG Temple Youth Group TYG There You Go TYG Tong Yang Group (Asia) TYG Thank You Girl (song) TYG the younger generation ) money market cumulative preferred shares (MMP MMP Matrix Metalloproteinase (enzymes related to tissue healing/remodeling and cancer cell metastasis) MMP Mixed Member Proportional (New Zealand electoral system) MMP Multi-man Publishing ) Series IV are rated 'AA' by Fitch Ratings. The $55,000,000 aggregate principal amount of MMP is offered in $25,000 denominations and pay dividends determined through a Dutch auction on a 28-day cycle. The 'AA' rating denotes expectations of very low credit risk. The assigned rating is based on the strength of the fund's underlying portfolio that provides debt and preferred stock liquidation coverage as well as the quality and experience of the fund's investment adviser Tortoise Capital Advisors, L.L.C. At the time of the rating, the fund's pro forma MMP coverage ratio calculated in accordance with the requirements of the 1940 Act as amended was approximately 226% and the Fitch coverage ratio was approximately 139%. These coverage ratios satisfy regulatory requirements mandating an asset coverage ratio Asset Coverage Ratio A test that determines a company's ability to cover debt obligations with its assets after all liabilities have been satisfied. It is calculated as the following: of 200% as well as Fitch's minimum coverage ratio requirements of 115%. The 'AAA' rating on the outstanding auction-rate senior notes series A, B, C, D, and E, and the 'AA' rating on the outstanding MMP series I, II, and III will not be adversely affected by this offering. Tortoise Energy Infrastructure Corporation (the fund), a closed-end, non-diversified investment management company, is registered under the Investment Company Act of 1940, which permits closed-end funds to borrow up to 33.33% of the value of the fund's total assets through the issuance of senior notes and 50% of the fund's value through the issuance of preferred shares. At the time of rating, the fund's total leverage from the issuance of senior notes and preferred stock was approximately 38% of its total assets. The fund will pay off its debt with proceeds from this MMP offering. The fund's main objective is to seek a high level of total return with an emphasis on current distributions to stockholders by investing primarily in a diversified portfolio of master limited partnership (MLP (Meridian Lossless Packing) The compression technique used in DVD-Audio that provides the highest audio quality. It delivers two channels at 192 kHz with 24-bit samples or six channels at 96 kHz. ) securities. Under normal market conditions, the fund invests at least 70% of its managed assets in a portfolio of income-producing equity securities of MLPs and energy infrastructure companies. In addition, the fund may invest up to 30% of its managed assets in direct placements. Tortoise Capital Advisors, L.L.C., the company's investment adviser, was formed in October 2002 to provide portfolio management services to institutional and high-net-worth investors seeking professional management of their MLP investments. As of July 31, 2007, the adviser had over $3.1 billion of energy assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . The effective date of the new rating is Aug. 17, 2007. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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