LEAWOOD, Kan. – Oct. 20, 2008 – Tortoise North American Energy Corp. (NYSE: TYN) today announced that as of the close of business on Oct. 17, 2008, the company was in compliance with all of its coverage covenants for its senior notes and preferred stock. The company had no bank debt outstanding. The company required no waivers from any lender and is not involved in any discussions to modify the terms of any of its agreements. On that date, the company's total assets were approximately $120 million and the company had $40 million of cash and expected cash from completed sales of securities. While volatile market conditions continue, the company will report its NAV and asset coverage ratios on a weekly basis. The information will be published on its website at www.tortoiseadvisors.com each Monday, after market close, based on Friday's closing prices.
The company also announced that it is no longer requesting a rating on its auction rate preferred shares from Fitch Ratings, following confirmation that the company is in compliance with its basic maintenance covenant requirements. Lacking a viable auction rate market, there is no benefit in maintaining two rating agency relationships. Moody's Investors Service Inc. will be the sole rating agency for the company's preferred shares. Moody's maintains an Aa2 rating on the company's preferred shares.
"I am pleased with the improvement we have made with respect to our leverage coverage ratios," said Chief Financial Officer, Terry Matlack. "In addition, we continue to focus on our goal of providing an attractive current distribution for our stockholders and the steady growth of that distribution. We will continue to manage our leverage with that goal in mind."
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.
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, email@example.com