Tortoise Capital Completes Merger of Tortoise Energy Infrastructure Corp. (NYSE: TYG) and Tortoise Midstream Energy Fund, Inc. (NYSE: NTG)

Rhea-AI Summary

Tortoise Capital Advisors has completed the merger of Tortoise Midstream Energy Fund (NYSE:NTG) into Tortoise Energy Infrastructure Corp. (NYSE:TYG), with TYG continuing as the surviving fund. The combined entity has total assets under management of $1.0 billion as of December 20, 2024. TYG will maintain its original investment strategy focusing on energy infrastructure, midstream, power, and renewable assets, seeking high total returns with emphasis on current distributions.

Under the merger terms, TYG acquired all NTG's assets and liabilities, with NTG shares converting to newly issued TYG shares at an exchange ratio of 1.27056339, based on their respective net asset values as of December 20, 2024.

Positive

• Combined AUM reaches $1.0 billion, increasing operational scale
• Enhanced efficiency through consolidated operations
• Maintains clear investment focus on energy infrastructure

Negative

• None.

Insights

Financial Analyst

The merger between TYG and NTG creates a more robust investment vehicle with $1.0 billion in AUM, offering several strategic advantages. The consolidation enhances operational efficiency through cost synergies and reduced administrative overhead. The exchange ratio of 1.27056339 appears fair, based on NAV calculations. This strategic move strengthens Tortoise Capital's market position in the energy infrastructure sector by creating a more liquid, larger-scale investment option. The consolidation is particularly timely given the current energy market dynamics and the growing importance of infrastructure investments. The enhanced scale should provide better portfolio diversification opportunities and potentially lower the fund's expense ratio, benefiting shareholders. The merger also improves trading liquidity, which typically leads to tighter bid-ask spreads - a significant advantage for investors. For simplified understanding: imagine two smaller stores merging into one larger supermarket, offering better efficiency, more products and potentially lower operating costs per item sold.

Market Research Analyst

This merger represents a significant consolidation in the energy infrastructure investment space. The timing aligns with broader industry trends toward consolidation to achieve scale benefits in the competitive closed-end fund market. The $1.0 billion AUM positions TYG as a more formidable player in the energy infrastructure investment sector. The maintained investment strategy focusing on midstream, power and renewable assets provides investors with a comprehensive energy sector exposure, particularly important as the energy transition continues to evolve. The merger's structure through a NAV-based exchange ratio protects shareholder interests while streamlining Tortoise's product offerings. Think of it like combining two specialized energy investment teams into one powerhouse, allowing for better resource allocation and potentially superior investment outcomes. The consolidated fund should have enhanced ability to capitalize on energy sector opportunities, particularly in essential infrastructure and renewable energy projects.

OVERLAND PARK, KS / ACCESSWIRE / December 23, 2024 / Tortoise Capital Advisors, L.L.C. (Tortoise Capital), a fund manager focused on energy investing, today announced the completion of a strategic merger between Tortoise Midstream Energy Fund, Inc. (NYSE:NTG) and Tortoise Energy Infrastructure Corp. (NYSE:TYG) with TYG emerging as the continuing fund. As of Dec. 20, 2024, the combined total assets under management (AUM) of TYG was $1.0 billion.

TYG will maintain its original investment strategy and objective, becoming Tortoise Capital's flagship closed-end fund solution for investors seeking exposure to energy in the closed-end fund structure. TYG provides investors with exposure to energy infrastructure, long-lived and essential midstream, power and renewable assets. It seeks a high level of total return, emphasizing current distributions.

"This merger represents a significant milestone for Tortoise Capital," said Tom Florence, CEO. "By combining the strengths of NTG and TYG, we are better positioned to serve our investors with long-term value, enhanced scale, efficiency, and opportunities within the energy sector."

Under the terms of the merger, TYG acquired all assets and liabilities of NTG. Shares of NTG were converted into newly issued TYG shares based on their respective net asset values as of Dec. 20, 2024, at an exchange ratio of 1.27056339. The transaction reflects Tortoise Capital's commitment to providing seamless transitions for shareholders while maximizing value.

About Tortoise Capital

With approximately $9.9 billion in assets under management as of Nov. 30, 2024, Tortoise Capital's record of investment experience and research dates back more than 20 years. As an early investor in midstream energy, Tortoise Capital believes it is well-positioned to be at the forefront of the global energy evolution that is under way. Based in Overland Park, Kansas, Tortoise Capital Advisors, L.L.C. is an SEC-registered investment adviser who manages funds that invest primarily in publicly traded companies in the energy and power infrastructure sectors-from production to transportation to distribution. For more information about Tortoise Capital, visit www.TortoiseAdvisors.com.

Cautionary Statement Regarding Forward-Looking Statements

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 funds 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 fund's 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 funds and Tortoise Capital Advisors do not assume a duty to update this forward-looking statement.

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.

IMPORTANT INFORMATION

Tortoise Capital Advisors, L.L.C. is the investment adviser to Tortoise Energy Infrastructure Corp. (TYG) and Tortoise Midstream Energy Fund, Inc. (NTG).

Media Contacts

Margaret Kirch Cohen/Richard Chimberg
Newton Park PR
+1 847-507-2229
+1 617-312-4281

margaret@newtonparkpr.com
rich@newtonparkpr.com

SOURCE: Tortoise Capital

View the original press release on accesswire.com

FAQ

What is the exchange ratio for NTG shares in the TYG merger?

NTG shares were converted into newly issued TYG shares at an exchange ratio of 1.27056339, based on their respective net asset values as of December 20, 2024.

What is the total AUM of the merged TYG fund?

The combined total assets under management (AUM) of TYG after the merger is $1.0 billion as of December 20, 2024.

What is TYG's investment strategy after the merger?

TYG maintains its original investment strategy, focusing on energy infrastructure, long-lived and essential midstream, power and renewable assets, seeking high total return with emphasis on current distributions.

When was the merger between TYG and NTG completed?

The merger between Tortoise Energy Infrastructure Corp. (TYG) and Tortoise Midstream Energy Fund (NTG) was completed on December 23, 2024.