Tortoise
Capital Resources Corp. Announces Additional Investment in VantaCore Partners
LP
Update
Also Provided on LONESTAR Midstream Partners, LP and LSMP GP, LP Distribution
Proceeds
FOR
IMMEDIATE RELEASE
LEAWOOD,
Kan.– Aug. 5, 2008 – Tortoise Capital Resources Corp. (NYSE: TTO) today
announced that it has invested $9.9 million in common units and incentive
distribution rights of VantaCore Partners LP (“VantaCore”), a TTO portfolio
company focused on the aggregates industry. Proceeds were used to
partially fund VantaCore’s acquisition of Southern Aggregates LLC (“Southern”),
a sand and gravel operation located near Baton Rouge, La.
In
connection with the transaction, VantaCore repaid a $3.8 million loan from
TTO
at a 3 percent premium to par value, resulting in net additional funding of
approximately $6.1 million. After the follow-on investment, TTO has a
total of approximately $18.4 million invested in
VantaCore. Additional equity financing for the Southern acquisition
came from Kayne Anderson Development Corp. and VantaCore
management. Debt financing was provided by Wells Fargo Foothill and
Gladstone Capital Corp.
“We
are
pleased to participate in the financing of the third acquisition for
VantaCore. The acquisition of Southern diversifies VantaCore’s earnings
base and geographic footprint to include the Baton Rouge and Lafayette, La.
markets,” said Tortoise Capital Resources Corp. President, Ed Russell. “As
part of the acquisition VantaCore added Marc Dyess, industry leader and founder
of Southern, to its experienced management team.”
LONESTAR
Midstream Partners, LP and LSMP GP, LP Update
On
July
17, 2008, LONESTAR Midstream Partners LP, closed a transaction with Penn
Virginia Resource Partners, L.P. (NYSE: PVR) for the sale of Lone
Star Gathering LP’s (an affiliate of LONESTAR Midstream Partners, L.P.) gas
gathering and transportation assets.
On
July
22, 2008, TTO received distribution proceeds of approximately $10.5 million
in
cash, 468,001 newly issued unregistered common units of PVR, and 59,503
unregistered common units of Penn Virginia GP Holdings, L.P. (NYSE:
PVG). TTO expects to receive 74,609 newly issued unregistered common
units of PVR and 9,487 unregistered common units of PVG units as a pro-rata
distribution of units held in escrow to be released in the next six to twelve
months. Any distributions received on the escrow units will be
retained by the escrow agent and released in accordance with the escrow
agreement. Additionally, TTO anticipates receiving approximately $1.0 million
in
cash payable on December 31, 2009. There are also two contingent
payments totaling approximately $9.7 million, payable in cash or common units
of
PVR (at purchasers’ election), which are based on the achievement of specific
revenue targets for the Barnett Shale region by or before June 30,
2013.
TTO
intends to use the cash proceeds from the transaction to pay down debt or make
additional investments in accordance with its investment objective.
About
Tortoise Capital Resources Corp.
Tortoise
Capital Resources invests primarily in privately-held and micro-cap public
companies operating in the midstream and downstream segments, and to a lesser
extent the upstream segment, of the U.S. energy infrastructure sector. Tortoise
Capital Resources seeks to provide stockholders a high level of total return,
with an emphasis on distributions and distribution growth.
About
Tortoise Capital Advisors, LLC
Tortoise
Capital Advisors, LLC, the adviser to Tortoise Capital Resources Corp., is
a
pioneer in the capital markets for master limited partnership (MLP) investment
companies and a leader in closed-end funds and separately managed accounts
focused on MLPs in the energy infrastructure sector. As of June 30, 2008, the
adviser had approximately $2.7 billion of assets under management.
Safe Harbor
Statement
This
press release shall not constitute an offer to sell or a solicitation to buy,
nor shall there be any sale of these securities in any state or jurisdiction
in
which such offer or solicitation or sale would be unlawful prior to registration
or qualification under the laws of such state or jurisdiction.
Contact
information
Tortoise
Capital Advisors, LLC Pam
Kearney, Investor Relations, (866) 362-9331, www.tortoiseadvisors.com.