Tortoise Announces Further Distribution Increases and Discount Management Program for Its Closed-End Funds - Seite 2

Discount Management Program

In addition to share repurchases which have been executed by the Funds, the Board of Directors has approved tender offers as part of the discount management program and announced conditional tender offers for each of the calendar years 2022 and 2023. A Fund would conduct a tender for 5% of the Fund’s outstanding shares of common stock at a price equal to 98% of net asset value (NAV) if its shares trade at an average discount to NAV of more than 10% during either of the designated measurement periods. The first measurement period will commence on February 1, 2022 and end July 31, 2022 for 2022, and the second measurement period will commence on August 1, 2022 and end July 31, 2023, for 2023. Should a tender offer be required, it will be executed following the completion of each of the aforementioned measurement periods. The Board will continue to evaluate the effectiveness of share repurchases and tender offers as part of the Funds’ discount management program, and may announce additional actions in the future.

The Funds’ portfolio managers, officers and Board of Directors will not tender their shares if a tender is required.

“We believe revising the distribution levels and managed distribution targets, and the conditional tenders for each of 2022 and 2023, to be very positive for shareholders,” said Brad Adams, CEO of Tortoise’s closed-end funds.

“We also have deep conviction in the closed-end fund structure as it allows managers to invest with long investment horizons, without constant inflows and outflows of cash and provides the opportunity to invest in less liquid securities and private placements, use leverage and provide high current distributions.”

Sector Outlook

“Our outlook for energy infrastructure is incredibly bullish,” said Matt Sallee, President – Tortoise. “Energy was the top performing sector in 2021 with midstream energy outperforming the S&P 500 for the first time in five years. We think several data points indicate a favorable outlook for 2022. A number of Wall Street firms have recommendations to increase energy and infrastructure exposure to position for a higher inflationary environment. From a fundamental perspective, companies have been generating significant amounts of free cash flow and returning it to shareholders. There are also signs the COVID-19 pandemic could move to an endemic in 2022, a great boost for energy demand. Finally, there are indications of global acceptance that natural gas should be included as a sustainable energy source and investment option as energy transitions. Although there are some potential macro headwinds that are hard to predict including the global pandemic and other geopolitical concerns, we believe that all of these catalysts will lead to strong returns for energy and power infrastructure companies and we want to pass along that value to our shareholders.”