Tortoise
Capital Resources Corp. Announces Sale of Millennium Midstream Partners,
L.P.
FOR
IMMEDIATE RELEASE
LEAWOOD,
Kan. – Sept. 16, 2008 – Tortoise Capital Resources Corp. (NYSE: TTO)
today announced that Millennium Midstream Partners, L.P. (Millennium),
a
portfolio company in which TTO invested $17.5 million, has entered into
a
definitive agreement to sell its partnership interests to Eagle Rock Energy
Partners, L.P. (NASDAQ: EROC), a publicly-traded master limited
partnership. Millennium is expected to
distribute substantially all of the net sale proceeds (after repayment
of
outstanding indebtedness) to its limited partners, including TTO.
TTO’s
portion of the initial sale proceeds is expected to be approximately $13.3
million in cash and approximately 628,000 EROC unregistered common
units. Approximately 254,000 of these units will be held in escrow
for 18 months.
"Millennium
will be the second TTO portfolio company with stock or assets acquired
by a
publicly-traded MLP this year. We believe that this further validates
our strategy of making private MLP investments,” said Tortoise Capital Resources
Corp. President, Ed Russell. “We also believe that Millennium’s
midstream assets located in Texas, Louisiana and offshore Gulf Coast of
Mexico
will be an excellent addition to EROC’s asset base. This sale adds to our
existing investment in EROC which originated before the company went
public.” After this transaction TTO’s portfolio will hold nearly 1.3
million EROC units, including the units held in escrow.
Millennium’s
partnership interests are being sold for approximately $181 million in
cash and
approximately 4.0 million of EROC unregistered common units, subject to
customary closing adjustments.
About
Tortoise Capital Resources Corp.
Tortoise
Capital Resources Corp. 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 Corp. seeks to provide stockholders a high level of total
return, with an emphasis on distributions and distribution growth.
About
Tortoise Capital Advisors
Tortoise
Capital Advisors, LLC is a pioneer in 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 sector. As of
July 31,
2008, the adviser had approximately $2.6 billion of assets under
management. For more information, visit our Web site
at www.tortoiseadvisors.com.
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, pkearney@tortoiseadvisors.com