KBRA Issues Rating Agency Confirmation Related to a Merger of Tortoise Energy Infrastructure Corporation with Tortoise Sustainable & Social Impact Term Fund

NEW YORK--(BUSINESS WIRE)--KBRA issues a no downgrade confirmation in relation to the proposed merger of Tortoise Energy Infrastructure Corporation ("TYG") and Tortoise Sustainable & Social Impact Term Fund ("TEAF"), with TYG being the remaining entity. The request for Rating Agency Confirmation ("RAC") was initially received on June 26, 2025. The analysis indicates that the proposed merger in and of itself will not result in a downgrade, qualification or withdrawal of KBRA’s current ratings issued in connection with the outstanding Senior Notes and Mandatory Redeemable Preferred Stock (“MRPS”).

TEAF is a closed end fund with an investment strategy which is focused on generating current income and total return, while making a positive social and environmental impact. The fund combines investments across publicly traded securities, direct and private investments and corporate debt instruments. Post merger of TEAF and TYG funds, TYG will be the surviving entity. The existing debt of TEAF is anticipated to be refinanced by an increase in TYG’s credit facility. There will be no change in TYG’s existing investment and operating strategy, which is focused on investments in publicly traded companies involved in transporting, processing, storing, distributing, or marketing natural gas, crude oil and refined petroleum products. Post merger the portfolio is anticipated to hold similar assets as the current form of TYG. KBRA’s view on the expected portfolio on pro-forma basis is that asset quality, liquidity and coverage ratio remain relatively in line with existing TYG portfolio. Merger is expected to complete by the fourth quarter of 2025, with a shareholder meeting scheduled for September 2025.

In August, prior to the completion of the merger, TYG expects to issue a new series of Senior Notes and MRPS, the proceeds of which will be used for purpose of refinancing of existing debt and for general corporate purposes. On a pro-forma basis, giving effect to the anticipated August 2025 issuance and the planned TYG-TEAF merger in the fourth quarter of 2025, TYG’s Senior Asset Coverage is expected to change from 647%, as of June 20, 2025, to 711%, and its Total Asset Coverage is expected to change from 500%, as of June 20, 2025, to 504%.

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Methodologies

• Funds: Investment Fund Debt Global Rating Methodology
• ESG Global Rating Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1010583