By Jennifer Chiou
New York, Feb. 3 - Tortoise Energy Capital Corp. announced the sale of $50 million of 5% series B mandatory redeemable preferred shares at $10 apiece.
Mandatory redemption will take place on March 1, 2018.
Net proceeds of about $49 million are earmarked for the redemption of all $45 million of the company's 5.6% mandatory redeemable preferred shares. Any remaining proceeds will be used to repay short-term debt outstanding under Tortoise's credit facility, to invest in energy infrastructure companies or for working capital.
The preferreds are expected to trade on the New York Stock Exchange under "TYY Pr B."
Tortoise anticipates an AA rating from Fitch Ratings.
Wells Fargo Securities was the structuring manager and bookrunner (800 326-5897).
Leawood, Kan.-based Tortoise provides financing for master limited partnership investments in the energy infrastructure sector.
| Issuer: | Tortoise Energy Capital Corp.
|
| Issue: | Series B mandatory redeemable preferred shares
|
| Amount: | $50 million
|
| Preferreds: | 5 million
|
| Price: | $10
|
| Redemption: | Mandatory on March 1, 2018
|
| Coupon: | 5%
|
| Bookrunner: | Wells Fargo Securities
|
| Announcement date: | Feb. 3
|
| Rating: | Fitch: AA
|
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