By Kansas City Business Journal

Tortoise MLP Fund Inc., a new fund that invests in natural gas-related businesses, plans to raise $1.06 billion through an initial public offering.

On Wednesday, the closed-end fund began offering 42.4 million shares of common stock at $25 each. The fund granted the underwriters a 45-day option to purchase an additional 6.15 million shares at the same price.

The proceeds from the offering will be used to invest in master limited partnerships (MLPs) that transport, gather, process and store natural gas and natural gas liquids. The fund is expected to make its first distribution by Nov. 30.

Tortoise MLP Fund Inc. (NYSE: NTG) will be managed by Leawood-based Tortoise Capital Advisors LLC, which will get an annual management fee of 0.95 percent of the fundâ¿¿s average monthly total assets.

Tortoise Capital Advisors had about $3.6 billion in assets under management as of June 30. The company also manages: Tortoise Energy Infrastructure Corp. (TYG); Tortoise Energy Capital Corp. (TYY); Tortoise North American Energy Corp. (TYN); Tortoise Capital Resources Corp. (TTO); and Tortoise Power and Energy Infrastructure (TPZ).

The underwriting syndicate for the initial public offering of Tortoise MLP Fund is led by Morgan Stanley, Citi, BofA Merrill Lynch, UBS Investment Bank and Wells Fargo Securities. Senior co-managers include Stifel Nicolaus Weisel, Barclays Capital, Oppenheimer & Co. and RBC Capital Markets.

Copyright 2010 American City Business Journals
Copyright 2010