tygnq.htm

 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 




Investment Company Act file number 811-21462



Tortoise Energy Infrastructure Corporation
(Exact name of registrant as specified in charter)



11550 Ash Street, Suite 300, Leawood, KS 66211
(Address of principal executive offices) (Zip code)



Terry Matlack
Diane Bono
11550 Ash Street, Suite 300, Leawood, KS 66211
(Name and address of agent for service)



913-981-1020
Registrant's telephone number, including area code



Date of fiscal year end: November 30


Date of reporting period:  August 31, 2013

 
 
 
 
Item 1. Schedule of Investments.

 
Tortoise Energy Infrastructure Corporation
            
SCHEDULE OF INVESTMENTS (Unaudited)
            
               
     
August 31, 2013
  
Master Limited Partnerships and Related Companies - 171.0% (1)
  
Shares
    
Fair Value
  
Crude/Refined Products Pipelines - 66.9% (1)
            
United States - 66.9% (1)
            
Buckeye Partners, L.P.
     1,141,200     $ 79,884,000  
Enbridge Energy Partners, L.P.
     2,287,200       68,204,304  
Genesis Energy L.P.
     195,000       9,490,650  
Holly Energy Partners, L.P.
     1,232,000       43,772,960  
Magellan Midstream Partners, L.P.
     3,227,503       175,124,313  
MPLX LP
     859,800       30,694,860  
NuStar Energy L.P.
     928,800       38,740,248  
Oiltanking Partners, L.P.
     666,500       32,325,250  
Phillips 66 Partners LP
     319,300       9,824,861  
Plains All American Pipeline, L.P.
     2,660,100       134,494,656  
Rose Rock Midstream, L.P.
     146,157       4,774,949  
Sunoco Logistics Partners L.P.
     2,030,300       130,426,472  
Tesoro Logistics LP
     600,123       32,166,593  
 
               789,924,116  
Natural Gas/Natural Gas Liquids Pipelines - 78.9% (1)
                
United States - 78.9% (1)
                
Boardwalk Pipeline Partners, LP
     3,038,600       91,340,316  
El Paso Pipeline Partners, L.P.
     2,309,700       96,383,781  
Energy Transfer Equity, L.P.
     704,400       45,314,052  
Energy Transfer Partners, L.P.
     1,759,295       90,199,055  
Enterprise Products Partners L.P.
     2,358,900       140,165,838  
EQT Midstream Partners, LP
     464,400       22,240,116  
Inergy Midstream, L.P.
     1,246,119       28,959,805  
Kinder Morgan Energy Partners, L.P.
     181,105       14,770,924  
Kinder Morgan Management, LLC (2)
     1,182,956       94,447,179  
ONEOK Partners, L.P.
     1,162,600       57,653,334  
Regency Energy Partners LP
     3,148,400       85,101,252  
Spectra Energy Partners, LP
     1,370,900       57,139,112  
TC PipeLines, LP
     835,800       40,385,856  
Williams Partners L.P.
     1,374,200       67,789,286  
                931,889,906  
Natural Gas Gathering/Processing - 25.2% (1)
                
United States - 25.2% (1)
                
Access Midstream Partners, L.P.
     1,929,700       88,013,617  
Crestwood Midstream Partners LP
     307,400       7,973,956  
DCP Midstream Partners, LP
     1,042,001       49,943,108  
MarkWest Energy Partners, L.P.
     520,900       34,790,911  
Targa Resources Partners LP
     892,367       43,601,051  
Western Gas Partners LP
     1,228,800       72,671,232  
                296,993,875  
                   
Total Master Limited Partnerships and Related Companies (Cost $977,413,815)
             2,018,807,897  
                   
Short-Term Investment - 0.0% (1)
                
United States Investment Company - 0.0% (1)
                
Fidelity Institutional Money Market Portfolio - Class I, 0.05% (3) (Cost $156,035)
     156,035       156,035  
                   
Total Investments - 171.0% (1) (Cost $977,569,850)
             2,018,963,932  
                   
Interest Rate Swap Contracts - 0.5% (1)
                
$110,000,000 notional - Unrealized Appreciation
             6,169,041  
Other Assets and Liabilities - (46.9%) (1)
             (554,556,868 )
Long-Term Debt Obligations - (17.8%) (1)
             (210,000,000 )
Mandatory Redeemable Preferred Stock at Liquidation Value - (6.8%) (1)
             (80,000,000 )
Total Net Assets Applicable to Common Stockholders - 100.0% (1)
           $ 1,180,576,105  
                   
                   
(1)
Calculated as a percentage of net assets applicable to common stockholders.
                
(2)
Security distributions are paid-in-kind.
                
(3)
Rate indicated is the current yield as of August 31, 2013.
                

 
 
 


Various inputs are used in determining the fair value of the Company’s financial instruments.  These inputs are summarized in the three broad levels listed below:

Level 1 – quoted prices in active markets for identical investments
Level 2 – other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.)
Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table provides the fair value measurements of applicable Company assets by level within the fair value hierarchy as of August 31, 2013.  These assets are measured on a recurring basis.

 
Fair Value at
              
Description
August 31, 2013
  
Level 1
  
Level 2
  
Level 3
  
Assets
                
Equity Securities:
                
Master Limited Partnerships and Related Companies(a)
 $ 2,018,807,897   $ 2,018,807,897   $ -   $ -  
Other Securities:
                        
Short-Term Investment(b)
   156,035     156,035     -     -  
Interest Rate Swap Contracts
   6,169,041     -     6,169,041     -  
Total Assets
 $ 2,025,132,973   $ 2,018,963,932   $ 6,169,041   $ -  
                         


(a)  
All other industry classifications are identified in the Schedule of Investments.
(b)  
Short-term investment is a sweep investment for cash balances in the Company at August 31, 2013.

The Company did not hold any Level 3 securities during the period from December 1, 2012 through August 31, 2013.

Valuation Techniques
In general, and where applicable, the Company uses readily available market quotations based upon the last updated sales price from the principal market to determine fair value.  This pricing methodology applies to the Company’s Level 1 investments. 

An equity security of a publicly traded company acquired in a private placement transaction without registration under the Securities Act of 1933, as amended (the “1933 Act”), is subject to restrictions on resale that can affect the security's fair value.  If such a security is convertible into publicly-traded common shares, the security generally will be valued at the common share market price adjusted by a percentage discount due to the restrictions and categorized as Level 2 in the fair value hierarchy.  If the security has characteristics that are dissimilar to the class of security that trades on the open market, the security will generally be valued and categorized as Level 3 in the fair value hierarchy.

Interest rate swap contracts are valued by using industry-accepted models which discount the estimated future cash flows based on a forward rate curve and the stated terms of the interest rate swap agreement by using interest rates currently available in the market, or based on dealer quotations, if available, and are categorized as Level 2 in the fair value hierarchy.

The Company utilizes the beginning of reporting period method for determining transfers between levels.  There were no transfers between levels during the period ended August 31, 2013.
As of August 31, 2013, the aggregate cost of securities for federal income tax purposes was $703,870,762.  The aggregate gross unrealized appreciation for all securities in which there was an excess of fair value over tax cost was $1,315,785,013, the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over fair value was $691,843 and the net unrealized appreciation was $1,315,093,170.
 
 
 


Item 2. Controls and Procedures.
 
(a)  
The registrant’s Chief Executive Officer and its Chief Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b)  
There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) are filed herewith.

 
 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


  Tortoise Energy Infrastructure Corporation  
       
Date:  October 24, 2013
By:
 /s/ Terry Matlack  
    Terry Matlack  
    Chief Executive Officer  
       



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

  Tortoise Energy Infrastructure Corporation  
       
Date: October 24, 2013
By:
  /s/ Terry Matlack  
    Terry Matlack  
    Chief Executive Officer  
       
  Tortoise Energy Infrastructure Corporation  
       
Date: October 24, 2013
By:
  /s/ P. Bradley Adams  
    P. Bradley Adams  
    Chief Financial Officer