Tortoise
Capital Resources Corporation Announces Company is in Compliance With
Coverage
Covenants for its Short-Term Borrowings -- Will participate in an Industry
Update Call on Tuesday, October 14
FOR
IMMEDIATE RELEASE
LEAWOOD,
Kan. – Oct. 13, 2008 – Tortoise Capital Resources Corp. (NYSE: TTO or
the company) announced today that it is in compliance with all of its
loan
covenants, and has adequate borrowing capacity to meet expected funding
requirements and consider additional investments. The company has a
committed credit facility of up to $50.0 million, which is secured with
substantially all assets of the company. The company currently has an
outstanding balance of $21.2 million, with availability of approximately
$21.9
million under current bank covenants. The company reported a net asset
value per
share of $13.38 as of Aug. 31, 2008, its most recent quarter end.
As
of the
close of business on Oct. 10, 2008, the company is in compliance with
all asset
coverage covenants or basic maintenance covenants for its credit facility.
According to the terms of its credit facility, the company must continually
maintain asset coverage requirements and is required to maintain a minimum
fair
market value of $7.5 million in unrestricted public securities (including
cash
and cash equivalents) based on its current principal balance. The fair
market
value of these assets as of market close on Oct. 10, 2008
was
approximately $11.3 million. The company is not seeking any waiver or
amendment to the terms of its credit facility at this time.
“The
recent sales of LONESTAR Midstream Partners, LP and Millennium
Midstream Partners, LP have allowed us to pay down our credit facility
by $24.2
million, providing us sufficient capital resources to meet the estimated
funding
requirements of our portfolio companies and to meet working capital needs,” said
Ed Russell, President. “We currently have approximately $21.9 million
available to invest in new projects that are vital to the energy infrastructure
of this country, at overall return characteristics that we expect to
be
attractive.”
On
Tuesday, Oct. 14, 2008 at 3:30 p.m. CDT, the company plans to host a
teleconference to update its investors on the U.S. mid-stream energy
infrastructure industry in which it invests. “In a period of tightening
liquidity, we like investing in the providers of essential services,” said Dave
Schulte, Chief Executive Officer. “The ability of both private and
publicly-traded MLPs in our portfolio to continue to pay increasing quarterly
cash distributions is a direct result of the resiliency of their business
operations and the investor friendly disciplines imbedded in their partnership
agreements. Last quarter three of our private companies and all of
our publicly-traded MLPs increased their distributions.”
Market
Update Call
The
company will host a conference call at 3:30 p.m. CDT on Oct. 14, 2008
to discuss
current U.S. mid-stream energy infrastructure industry market conditions.
Please
dial-in approximately five to 10 minutes prior to the scheduled start
time.
U.S./Canada:
(303) 262-2075
International: (800)
240-8621
The
call
will also be webcast in a listen-only format. A link to the webcast will
be
accessible at www.tortoiseadvisors.com.
A
replay
of the call will be available beginning at 6 p.m. CDT on Oct. 14, 2008
and
continuing until 11:59 p.m. CDT Nov. 10, 2008, by dialing (303) 590-3000
(U.S./Canada). The replay access code is 11121229#. A
replay of the webcast will also be available on the company's Web site
at
www.tortoiseadvisors.com through Oct. 14, 2009.
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
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 Sept.
30, 2008, the adviser had approximately $2.2 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.
Forward-Looking
Statement
This
press release contains certain statements that may include “forward-looking
statements” within the meaning of
Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act
of 1934. All statements, other than statements of historical fact, included
herein are "forward-looking statements." Although the company and Tortoise
Capital Advisors believe that the expectations reflected in these
forward-looking statements are reasonable, they do involve assumptions,
risks
and uncertainties, and these expectations may prove to be incorrect.
Actual
results could differ materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those discussed
in the
funds’ reports that are filed with the Securities and Exchange Commission. You
should not place undue reliance on these forward-looking statements,
which speak
only as of the date of this press release. Other than as required by
law, the
company and Tortoise Capital Advisors do not assume a duty to update
this
forward-looking statement.
Contact
information:
Tortoise
Capital Advisors, LLC
Pam
Kearney, Investor Relations, (866) 362-9331,
pkearney@tortoiseadvisors.com