Tortoise Pipeline & Energy Fund launched, raising $250 million in IPO

By Toni Weeks

San Diego, Oct. 27 - Tortoise Pipeline & Energy Fund, Inc. announced the launch of its Tortoise Pipeline & Energy Fund, Inc., raising $250 million in the fund's initial public offering, according to a company press release.

If exercised, the $35 million greenshoe would bring the proceeds to $285 million.

The fund's investment objective is to provide its stockholders with a high level of total return with an emphasis on current distributions by focusing on North American pipeline companies that transport natural gas, natural gas liquids, crude oil and refined products and, to a less extent, other energy infrastructure companies. As a flow-through-regulated investment company, the fund may purchase securities of traditional pipeline corporations along with master limited partnerships.

The underwriting syndicate was led by Morgan Stanley, Citigroup and UBS Investment Bank. Senior co-managers included Ameriprise Financial Services, Inc., Barclays Capital, Oppenheimer & Co., RBC Capital Markets and Stifel Nicolaus Weisel. Montage Investments and its affiliates provided sales and marketing support.

The fund's shares began trading on the New York Stock Exchange on Thursday under the symbol "TTP."

The Leawood, Kan., company is a newly organized, non-diversified closed-end management investment company focused on investing in equity securities of pipeline and other energy infrastructure companies.

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