tygnq22908.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)



10801 Mastin Blvd., Suite 222, Overland Park, KS 66210
(Address of principal executive offices) (Zip code)



David J. Schulte
10801 Mastin Blvd., Suite 222, Overland Park, KS 66210
(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:  February 29, 2008




Item 1. Schedule of Investments.

Tortoise Energy Infrastructure Corporation
            
SCHEDULE OF INVESTMENTS (Unaudited)
            
               
     
February 29, 2008   
  
 
  
Shares
    
Fair Value
  
 
Common Stock - 0.2% (1)
            
Shipping - 0.2% (1)
            
Republic of the Marshall Islands - 0.2% (1)
            
Capital Product Partners L.P. (Cost $1,136,941)
    
52,881
     $
1,068,196
  
                   
Master Limited Partnerships and Related Companies - 191.7% (1)
                
Crude/Refined Products Pipelines - 90.0% (1)
                
United States - 90.0% (1)
                
Buckeye Partners, L.P.
    
533,367
      
26,177,652
  
Enbridge Energy Partners, L.P.
    
925,300
      
46,246,494
  
Enbridge Energy Partners, L.P. (2) (3)
    
1,008,091
      
49,094,055
  
Global Partners LP
    
214,286
      
5,854,294
  
Holly Energy Partners, L.P. (4)
    
427,070
      
17,544,036
  
Kinder Morgan Management, LLC (3) (5)
    
1,692,458
      
92,255,913
  
Magellan Midstream Partners, L.P.
    
1,974,445
      
85,513,213
  
NuStar Energy L.P.
    
1,000,355
      
53,428,961
  
NuStar GP Holdings, LLC
    
543,429
      
14,748,663
  
Plains All American Pipeline, L.P.
    
1,833,784
      
87,563,186
  
SemGroup Energy Partners, L.P.
    
271,982
      
6,780,511
  
Sunoco Logistics Partners L.P.
    
930,280
      
49,769,980
  
TEPPCO Partners, L.P.
    
869,520
      
32,833,075
  
TransMontaigne Partners L.P.
    
207,800
      
6,144,646
  
               
573,954,679
  
                   
Natural Gas/Natural Gas Liquids Pipelines - 51.5% (1)
                
United States - 51.5% (1)
                
Boardwalk Pipeline Partners, LP
    
1,144,700
      
27,152,284
  
El Paso Pipeline Partners, L.P.
    
902,350
      
21,151,084
  
Energy Transfer Equity, L.P.
    
729,661
      
24,268,525
  
Energy Transfer Partners, L.P.
    
1,722,250
      
82,530,220
  
Enterprise GP Holdings L.P.
    
105,425
      
3,312,454
  
Enterprise Products Partners L.P.
    
2,847,220
      
88,178,403
  
ONEOK Partners, L.P.
    
267,455
      
16,590,234
  
Spectra Energy Partners, LP
    
332,965
      
8,224,235
  
TC PipeLines, LP
    
1,307,759
      
44,686,125
  
Williams Pipeline Partners L.P.
    
623,990
      
12,355,002
  
               
328,448,566
  
                   
Natural Gas Gathering/Processing - 36.2% (1)
                
United States - 36.2% (1)
                
Copano Energy, L.L.C.
    
1,248,389
      
45,503,779
  
Crosstex Energy, L.P.
    
981,347
      
31,020,379
  
Crosstex Energy, L.P. (2) (6)
    
193,767
      
5,132,888
  
DCP Midstream Partners, LP
    
413,825
      
15,005,294
  
Duncan Energy Partners L.P.
    
433,700
      
9,155,407
  
Exterran Partners, L.P.
    
323,493
      
10,607,335
  
Hiland Partners, LP
    
41,048
      
2,080,723
  
MarkWest Energy Partners, L.P.
    
2,201,640
      
75,956,580
  
Regency Energy Partners LP
    
133,000
      
3,944,780
  
Targa Resources Partners LP
    
142,600
      
3,456,624
  
Williams Partners L.P.
    
784,707
      
29,136,171
  
               
230,999,960
  
                   
Propane Distribution - 9.1% (1)
                
United States - 9.1% (1)
                
Inergy, L.P.
    
1,916,784
      
55,989,261
  
Inergy Holdings, L.P.
    
49,715
      
2,197,403
  
               
58,186,664
  
                   
Shipping - 4.9% (1)
                
Republic of the Marshall Islands - 0.8% (1)
                
Teekay LNG Partners L.P.
    
156,200
      
4,693,810
  
United States - 4.1% (1)
                
K-Sea Transportation Partners L.P. (4)
    
612,800
      
22,140,464
  
OSG America L.P.
    
293,235
      
4,105,290
  
               
26,245,754
  
               
30,939,564
  
                   
Total Master Limited Partnerships and Related Companies (Cost $832,753,264)
            
1,222,529,433
  
                   
Short-Term Investment - 8.7% (1)
                
United States Investment Company - 8.7% (1)
                
First American Government Obligations Fund - Class Y, 2.91% (7) (Cost $55,779,214)
    
55,779,214
      
55,779,214
  
                   
Total Investments - 200.6% (1) (Cost $889,669,419)
            
1,279,376,843
  
Long-Term Debt Obligations - (36.8%) (1)
             (235,000,000 )
Interest Rate Swap Contracts - (3.4%) (1)
                
$290,000,000 notional - Unrealized Depreciation
            (21,489,294 )
Liabilities in Excess of Cash and Other Assets - (31.4%) (1)
             (200,138,459 )
Preferred Shares at Redemption Value - (29.0%) (1)
             (185,000,000 )
Total Net Assets Applicable to Common Stockholders - 100.0% (1)
           $
637,749,090
  
                   
(1) Calculated as a percentage of net assets applicable to common stockholders.
(2) Restricted securities have a total fair value of $54,226,943 which represents 8.5% of net assets.
(3) Security distributions are paid-in-kind.
(4) Affiliated investment; the Company owns 5% or more of the outstanding voting securities of the issuer.
(5) All or a portion of the security is segregated as collateral for the unrealized depreciation of interest rate swap contracts.
(6) Non-income producing.
(7) Rate indicated is the 7-day effective yield as of February 29, 2008. 
 
Certain of the Company’s investments are restricted and are valued as determined in accordance with procedures established by the Board of Directors.  The table below shows the number of units held, acquisition date, acquisition cost, fair value per unit of such securities and percent of net assets which the securities comprise at February 29, 2008.

Investment Security
Number of Units
Acquisition Date
Acquisition
Cost
Fair Value
Per Unit
Fair Value as Percent of
Net Assets
Crosstex Energy, L.P.
Series D Subordinated Units
193,767
3/23/07
$  5,000,002
$26.49
 0.8%
Enbridge Energy Partners, L.P.
Class C Common Units
1,008,091
4/02/07
50,000,000
  48.70
7.7   
       
$55,000,002
  
8.5%

Investments representing 5 percent or more of the outstanding voting securities of a portfolio company result in that company being considered an affiliated company, as defined in the 1940 Act. The aggregate fair value of all securities of affiliates held by the Company as of February 29, 2008 amounted to $39,684,500, representing 6.2 percent of net assets applicable to common stockholders.  A summary of affiliated transactions for each company which is an affiliate at February 29, 2008 or was an affiliate during the period ended February 29, 2008, is as follows:

 
Share Balance 11/30/07
Gross Additions
 
Realized
Gross Distributions Received
February 29, 2008
 
Gross Reductions
Gain (Loss)
Share Balance
Fair Value
Holly Energy Partners, L.P.
427,070
$               -
$               -
$               -
$   309,626
427,070
$  17,544,036
K-Sea Transportation Partners L.P.
612,800
                 -
                 -
-
453,472
612,800
22,140,464
MarkWest Energy Partners, L.P. (1)
2,201,640
                  -
                 -
                 -
  1,254,935
2,201,640
    75,956,580
   
$                -
$               -
$               -
$2,018,033
  
$115,641,080

  (1) Not deemed an affiliate as of February 29, 2008.
 
As of February 29, 2008, the aggregate cost of securities for federal income tax purposes was $815,176,749.  At February 29, 2008, the aggregate gross unrealized appreciation for all securities in which there was an excess of fair value over tax cost was $468,631,271, the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over fair value was $4,431,177 and the net unrealized appreciation was $464,200,094.

Item 2. Controls and Procedures.
 
(a)  
The registrant’s President and 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:  April 24, 2008
By:
/s/David J. Schulte  
    David J. Schulte  
    President and 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:  April 24, 2008
By:
/s/David J. Schulte  
    David J. Schulte  
    President and Chief Executive Officer  
       
       
Date:  April 24, 2008
By:
/s/Terry Matlack  
    Terry Matlack  
    Chief Financial Officer