LEAWOOD, Kan.–(BUSINESS WIRE)–Tortoise Essential Assets Income Term Fund (NYSE: TEAF) today provided
an update on the fund’s investment of the IPO proceeds and
a podcast on the recent market performance.
“We are very pleased with the progress we’ve made on the fund’s
investments since the IPO as we have now made direct investments in each
of the investment verticals,” said Managing Director and Closed-End Fund
CEO, Brad Adams. “We were able to invest the initial proceeds
efficiently, achieving our yield, liquidity and diversification targets.
Our goal is to allocate approximately 60% of the portfolio into direct
investments within the first year. We have made good progress and see a
strong path ahead in our pipeline of future direct investments.”
Since the fund’s inception, it has closed on four direct investments
totaling more than $22 million. The social infrastructure direct
investment is a new charter school in Philadelphia that is expected to
house 900 students. The sustainable infrastructure deal is a utility
scale solar project in Bermuda. The fund also participated in two
private investments in public equity (PIPE) energy infrastructure deals
including a midstream energy company with prominent natural gas assets
in the Permian Basin and a supplier of wood pellets used by global power
generators as a renewable energy source. Each of these investments were
made at or above our forecasted yield target.
As previously announced, the fund declared its initial monthly
distributions ahead of schedule achieving the fund’s distribution rate
target. The $0.1085 per share monthly distributions represent a 6.51%
distribution rate on its $20.00 public offering price.
“We believe the investment potential of the fund remains strong, and are
uncertain of what’s driving the fund’s recent market performance,” said
Adams. “Fundamentals are strong across the various segments of the
portfolio, and in our opinion, the recent market performance can be
attributed to the expiration of the penalty bid and overallotment
option, combined with light trading volume, the fund going ex-dividend
and recent equity market volatility weighing on equities broadly. The
confluence of these factors have caused downward pressure on the stock
price, resulting in a market price that is bifurcated from the fund’s
net asset value. Our ongoing conviction in the fund remains strong and
the adviser to the fund, as well as certain members of management
individually, have recently purchased additional shares of the fund.”
This fund is managed with a long-term focus on essential assets through
public and direct investments across social infrastructure, sustainable
infrastructure and energy infrastructure. These assets tend to be
uncorrelated assets that have attractive potential for high total return
with an emphasis on current income as well as a relatively inelastic
demand profile.
About Tortoise
Tortoise invests in essential assets – those assets and services that
are indispensable to the economy and society. With a steady wins
approach and a long-term perspective, Tortoise strives to make a
positive impact on clients and communities. For additional information,
please visit 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.
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, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements, other than statements
of historical fact, included herein are “forward-looking statements.”
Although the fund 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 fund and Tortoise
Capital Advisors do not assume a duty to update this forward-looking
statement.
Contacts
Tortoise
Pam Kearney, Investor and Public Relations
(866)
362-9331
[email protected]
