Tortoise DEF 14A
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant
to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No.)
Filed by the Registrant [X]
Filed by a Party other than
the Registrant [ ]
Check the appropriate box:
[ ] |
Preliminary Proxy Statement. |
[ ] |
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
[X] |
Definitive Proxy Statement |
[ ] |
Definitive Additional Materials. |
[ ] |
Soliciting Material Pursuant to §240.14a-12 |
TORTOISE ENERGY INFRASTRUCTURE
CORPORATION
TORTOISE ENERGY CAPITAL CORPORATION
TORTOISE NORTH AMERICAN ENERGY CORPORATION
(Name of Registrant as Specified In Its
Charter)
(Name of Person(s)
Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate
box):
[ ] |
Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
|
(1) |
Title of each class of securities to which transaction applies: |
|
(2) |
Aggregate number of securities to which transaction applies: |
|
(3) |
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule
0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): |
|
(4) |
Proposed maximum aggregate value of transaction: |
[ ] |
Fee paid previously with preliminary materials. |
[ ] |
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify the previous filing by
registration statement number, or the Form or Schedule and the date of its filing. |
|
(1) |
Amount Previously Paid: |
|
(2) |
Form, Schedule or Registration Statement No.: |
TORTOISE ENERGY INFRASTRUCTURE
CORPORATION
TORTOISE ENERGY CAPITAL CORPORATION
TORTOISE NORTH AMERICAN ENERGY CORPORATION
10801
Mastin Boulevard, Suite 222
Overland Park, Kansas 66210
1-866-362-9331
January 26, 2007
Dear Fellow Stockholder:
You are cordially invited to attend the combined
annual meeting of stockholders of each of Tortoise Energy Infrastructure Corporation, Tortoise Energy
Capital Corporation and Tortoise North American Energy Corporation (each a Company and
collectively, the Companies) on Friday, April 13, 2007 at 9:00 a.m., Central Time, at University
of Kansas, Edwards Campus, 12600 Quivira Road, Regnier Hall 165, Overland Park, KS 66213.
The matters scheduled for consideration at the
meeting for each Company are the election of two directors of the Company, the grant of authority to the
Company to sell its common shares for less than net asset value, subject to certain conditions, and the
ratification of the selection of Ernst & Young LLP as the independent registered public accounting firm of
the Company for its fiscal year ending November 30, 2007, as more fully discussed in the enclosed proxy
statement.
Enclosed with this letter are answers to questions
you may have about the proposals, the formal notice of the meeting, the Companies combined proxy
statement, which gives detailed information about the proposals and why each Companys Board of Directors
recommends that you vote to approve each of the Companys proposals, the actual proxy for you to sign and
return, and the applicable Companys Annual Report to stockholders for the fiscal year ended November 30,
2006. If you have any questions about the enclosed proxy or need any assistance in voting your shares, please
call 1-866-362-9331.
Your vote is important. Please complete, sign, and
date the enclosed proxy card and return it in the enclosed envelope. This will ensure that your vote is
counted, even if you cannot attend the meeting in person.
|
Sincerely,
David J. Schulte
CEO and President |
TORTOISE ENERGY INFRASTRUCTURE
CORPORATION
TORTOISE ENERGY CAPITAL CORPORATION
TORTOISE NORTH AMERICAN ENERGY CORPORATION
ANSWERS TO SOME
IMPORTANT QUESTIONS
Q. WHAT AM I BEING ASKED TO
VOTE FOR ON THIS PROXY?
A. This proxy contains three
proposals for each Company: (i) the election of two directors to serve until the 2010 Annual Stockholder
Meeting; (ii) the grant of authority to the Company to sell its common shares for less than net asset value,
subject to certain conditions; and (iii) the ratification of Ernst & Young LLP as the Companys
independent registered public accounting firm. Stockholders of the Company may also transact such other
business as may properly come before the meeting.
Q. AM I ENTITLED TO VOTE ON THE ELECTION OF BOTH
DIRECTORS?
A. Holders of preferred shares and
holders of common shares are entitled to vote as a single class on the election of H. Kevin Birzer. Only
holders of preferred shares voting as a class are entitled to vote on the election of John R. Graham.
Q. HOW DOES THE BOARD OF DIRECTORS SUGGEST THAT I
VOTE?
A. The Board of Directors of each
Company unanimously recommends that you vote FOR all proposals on the enclosed proxy card.
Q. HOW CAN I VOTE?
A. You can vote by completing,
signing and dating your proxy, and mailing it in the enclosed envelope. You also may vote in person if you are
able to attend the meeting. However, even if you plan to attend the meeting, we urge you to cast your vote by
mail. That will ensure that your vote is counted should your plans change.
This information summarizes
information that is included in more
detail in the Proxy Statement. We urge you to
read the entire Proxy
Statement carefully.
If you have questions, call
1-866-362-9331.
TORTOISE ENERGY
INFRASTRUCTURE CORPORATION
TORTOISE ENERGY CAPITAL CORPORATION
TORTOISE NORTH
AMERICAN ENERGY CORPORATION
10801 Mastin Boulevard, Suite 222
Overland Park, Kansas
66210
1-866-362-9331
NOTICE OF ANNUAL MEETING OF
STOCKHOLDERS
To the Stockholders of: |
Tortoise Energy Infrastructure Corporation
Tortoise Energy Capital Corporation
Tortoise North American Energy Corporation: |
NOTICE IS HEREBY GIVEN that the combined Annual
Meeting of Stockholders of Tortoise Energy Infrastructure Corporation, Tortoise Energy Capital Corporation and
Tortoise North American Energy Corporation, each a Maryland corporation (each a Company and,
collectively, the Companies), will be held on Friday, April 13, 2006 at 9:00 a.m. Central Time at
University of Kansas, Edwards Campus, 12600 Quivira Road, Regnier Hall 165, Overland Park, KS 66213 for the
following purposes:
|
1. |
For all Companies: To elect two directors of the Company, to hold office for a term of
three years and until their respective successors are duly elected and qualified; |
|
2. |
For all Companies: To grant the Company the authority to sell its common shares for
less than net asset value, subject to certain conditions; and |
|
3. |
For all Companies: To ratify the selection of Ernst & Young LLP as the independent
registered public accounting firm of the Company for its fiscal year ending November 30, 2007. |
The foregoing items of business are more fully
described in the Proxy Statement accompanying this Notice.
Stockholders may also transact any other business
that properly comes before the meeting.
Stockholders of record as of the close of business
on January 16, 2007 are entitled to notice of and to vote at the meeting (or any adjournment or postponement
of the meeting).
|
By Order of the Board of Directors of each Company,
Zachary A. Hamel Secretary |
January 26, 2007
Overland
Park, Kansas
All stockholders are cordially invited to
attend the meeting in person. Whether or not you expect to attend the meeting, please complete, date, sign and
return the enclosed proxy as promptly as possible in order to ensure your representation at the meeting. A
return envelope (which postage is prepaid if mailed in the United States) is enclosed for that purpose. Even
if you have given your proxy, you may still vote in person if you attend the meeting. Please note, however,
that if your shares are held of record by a broker, bank or other nominee and you wish to vote at the meeting,
you must obtain from the record holder a proxy issued in your name.
TORTOISE ENERGY
INFRASTRUCTURE CORPORATION
TORTOISE ENERGY CAPITAL CORPORATION
TORTOISE NORTH
AMERICAN ENERGY CORPORATION
10801 Mastin Boulevard, Suite 222
Overland Park,
Kansas 66210
1-866-362-9331
COMBINED PROXY STATEMENT
ANNUAL MEETING OF STOCKHOLDERS
APRIL 13,
2007
This combined proxy statement is
being sent to you by the Boards of Directors of each of Tortoise Energy Infrastructure Corporation,
Tortoise Energy Capital Corporation and Tortoise North American Energy Corporation (each a
Company and collectively, the Companies). The Board of Directors of each Company is
asking you to complete and return the enclosed proxy, permitting your shares of the Company to be voted at the
annual meeting of stockholders called to be held on April 13, 2007. The Board of Directors of each Company has
fixed the close of business on January 16, 2007 as the record date (the record date) for the
determination of stockholders entitled to notice of and to vote at the meeting and at any adjournment thereof
as set forth in this combined proxy statement. This combined proxy statement and the enclosed proxy and the
applicable Companys Annual Report for the fiscal year ended November 30, 2006 are first being mailed to
stockholders on or about January 26, 2007.
Each Companys reports can be
accessed through its link on its investment advisors website (www.tortoiseadvisors.com) or on the
Securities and Exchange Commissions (SEC) website (www.sec.gov).
This combined proxy statement sets
forth the information that each Companys stockholders should know in order to evaluate each of the
following proposals. The following table presents a summary of the proposals for each Company and the class of
stockholders of the Company being solicited with respect to each proposal.
Proposal (For Each Company)
|
|
Class of Stockholders of Each Company Entitled to Vote
|
1. |
To elect the following individuals as directors for a term of three years: |
|
|
|
H. Kevin Birzer |
|
Common Stockholders and Preferred Stockholders, voting as a single class |
|
John R. Graham |
|
Preferred Stockholders, voting as a class |
2. |
To grant the Company the authority to sell its common shares for less than net asset value, subject to certain conditions |
|
Common Stockholders and Preferred Stockholders, voting as a single class |
3. |
To ratify the selection of Ernst & Young LLP as the independent registered public accounting firm of the Company for the fiscal year ending November 30, 2007 |
|
Common Stockholders and Preferred Stockholders, voting as a single class |
PROPOSAL ONE
ELECTION OF TWO DIRECTORS
The Board of Directors of each
Company unanimously nominated H. Kevin Birzer and John R. Graham, following a recommendation by the Nominating
and Governance Committee of each Company, for election as directors at the combined annual meeting of
stockholders of the Companies. Each of these nominees is currently a director of each of the Companies, has
consented to be named in this proxy statement and has agreed to serve if elected. None of the Companies has
any reason to believe that either Mr. Birzer or Mr. Graham will be unavailable to serve.
The persons named on the
accompanying proxy card intend to vote at the meeting (unless otherwise directed) FOR the
election of Messrs. Birzer and Graham as directors of each Company. Currently, each Company has five
directors. In accordance with each Companys Articles of Incorporation, its Board of Directors is divided
into three classes of approximately equal size. The terms of the directors of the different classes are
staggered. With respect to each Companys Board of Directors, the term of Conrad S. Ciccotello expires on
the date of the 2008 annual meeting of stockholders of that Company, and the terms of Terry C. Matlack and
Charles E. Heath expire at the 2009 annual meeting of stockholders of that Company. If Mr. Birzer and Mr.
Graham are elected at the 2007 annual meeting, their terms as directors of each Company will expire on the
date of the 2010 annual meeting of stockholders of that Company. Pursuant to the terms of each Companys
preferred shares, the preferred stockholders of that Company have the exclusive right to elect two directors
to the Companys Board. The Board of each Company has designated Mr. Matlack and Mr. Graham as the
directors the preferred stockholders of that Company shall have the right to elect.
On this proposal, each
Companys holders of preferred shares will have the exclusive right, voting as a class, to vote on the
election of Mr. Graham as director of that Company, and each Companys holders of preferred shares and
common shares will vote together as a single class on the election of Mr. Birzer as director of that Company.
Stockholders do not have cumulative voting rights.
With respect to each Company, if
elected, Mr. Birzer and Mr. Graham will hold office until the 2010 annual meeting of stockholders of the
Company and until their successors are duly elected and qualified. If either Mr. Birzer or Mr. Graham is
unable to serve because of an event not now anticipated, the persons named as proxies may vote for one or more
other persons designated by the Companys Board of Directors.
The following table sets forth
each Board members name, age and address; position(s) with the Companies and length of time served;
principal occupation during the past five years; the number of portfolios in the Fund Complex that each Board
member oversees; and other public company directorships held by each Board member. The Investment Company Act
of 1940, as amended (the 1940 Act), requires the term Fund Complex to be defined to
only include registered investment companies advised by the Companys investment advisor, Tortoise
Capital Advisors, L.L.C. (the Advisor), and, as a result, as of January 22, 2007 the Fund Complex
included Tortoise Energy Infrastructure Corporation (TYG), Tortoise Energy Capital Corporation
(TYY), Tortoise North American Energy Corporation (TYN). It is important to note that
the Advisor also is the investment advisor to Tortoise Capital Resources Corporation (TTO), a fund
which intends to elect to become a business development company in the first half of 2007.
NOMINEE FOR DIRECTOR WHO IS INDEPENDENT:
Name, Age and Address
|
|
Position(s) Held with Each Company and Length of Time Served
|
|
Principal Occupation During Past Five Years
|
|
Number of Portfolios in Fund Complex Overseen by Director
|
|
Other Public Company Directorships Held by Director
|
John R. Graham*, 61 10801 Mastin Blvd. Suite 222 Overland Park, KS 66210 |
|
Director of TYG since 2003; Director of each of TYY and TYN since 2005 |
|
Executive-in-Residence and Professor of Finance, College of Business
Administration, Kansas State University (has served as a professor or adjunct professor since 1970);
Chairman of the Board, President and CEO, Graham Capital Management, Inc. (primarily a real estate
development and investment company and a venture capital company) and Owner of Graham Ventures (a
business services and venture capital firm). Formerly, CEO, Kansas Farm Bureau Financial Services,
including seven affiliated insurance or financial service companies (1979-2000). |
|
Three |
|
Erie Indemnity Company; Kansas State Bank |
* |
Mr. Graham is also a director of TTO. |
NOMINEE FOR DIRECTOR WHO IS AN INTERESTED PERSON:
Name, Age and Address
|
|
Position(s) Held with Each Company and Length of Time Served
|
|
Principal Occupation During Past Five Years
|
|
Number of Portfolios in Fund Complex Overseen by Director
|
|
Other Public Company Directorships Held by Director
|
H. Kevin Birzer*, 47 10801 Mastin Blvd. Suite 222 Overland Park, KS 66210 |
|
Director and Chairman of the Board of TYG since 2003; Director and Chairman of the
Board of each of TYY and TYN since 2005 |
|
Managing Director of the Advisor since 2002; Partner, Fountain Capital Management,
L.L.C. (Fountain Capital), a registered investment advisor (1990 - present). Formerly, Vice
President, Corporate Finance Department, Drexel Burnham Lambert (1986 - 1989); and Vice President, F.
Martin Koenig & Co. (1983-1986). |
|
Three |
|
None |
* |
Mr. Birzer, as a principal of the Advisor, is an interested person of each
Company, as that term is defined in Section 2(a)(19) of the 1940 Act. Mr. Birzer is also a director and
Chairman of the Board of TTO. |
REMAINING DIRECTORS WHO ARE INDEPENDENT:
Name, Age and Address
|
|
Position(s) Held with Each Company and Length of Time Served
|
|
Principal Occupation During Past Five Years
|
|
Number of Portfolios in Fund Complex Overseen by Director
|
|
Other Public Company Directorships Held by Director
|
Charles E. Heath*, 64 10801 Mastin Blvd. Suite 222 Overland Park, KS 66210 |
|
Director of TYG since 2003; Director of each of TYY and TYN since 2005 |
|
Retired in 1999. Formerly, Chief Investment Officer, GE Capitals Employers
Reinsurance Corporation (1989-1999). CFA since 1974. |
|
Three |
|
None |
Conrad S. Ciccotello*, 46 10801 Mastin Blvd. Suite 222 Overland Park, KS 66210 |
|
Director of TYG since 2003; Director of each of TYY and TYN since 2005 |
|
Tenured Associate Professor of Risk Management and Insurance, Robinson College of
Business, Georgia State University (faculty member since 1999); Director of Graduate Personal
Financial Planning Programs, and Editor, Financial Services Review since 2001 (an academic journal
dedicated to the study of individual financial management). Formerly, faculty member, Pennsylvania
State University (1997-1999). |
|
Three |
|
None |
* |
Messrs. Ciccotello and Heath are also directors of TTO. |
REMAINING DIRECTOR WHO IS AN INTERESTED PERSON:
Name, Age and Address
|
|
Position(s) Held with Each Company and Length of Time Served
|
|
Principal Occupation During Past Five Years
|
|
Number of Portfolios in Fund Complex Overseen by Director
|
|
Other Public Company Directorships Held by Director
|
Terry C. Matlack*, 50 10801 Mastin Blvd. Suite 222 Overland Park, KS 66210 |
|
Director and Chief Financial Officer of each Company since its inception (TYG
inception in 2003; TYY and TYN inception in 2005); Assistant Treasurer of each Company since
November 2005; Treasurer of each Company from its inception to November 2005; Chief Compliance
Officer of each Company from its inception through May 2006 |
|
Managing Director of the Advisor since 2002; Managing Director, Kansas City Equity
Partners LC (KCEP), a private equity firm (2001- present). Formerly, President, GreenStreet
Capital (1995 - 2001). |
|
Three |
|
None |
* |
Mr. Matlack, as a principal of the Advisor, is an interested person of each
Company, as that term is defined in Section 2(a)(19) of the 1940 Act. Mr. Matlack is also a director and
officer of TTO. |
Officers. Mr. Birzer is the
Chairman of the Board of each Company, and Mr. Matlack is the Chief Financial Officer and Assistant Treasurer
of each Company. The preceding tables give more information about Mr. Birzer and Mr. Matlack. The following
table sets forth each other officers name, age and address; position(s) held with each Company and
length of time served; principal occupation during the past five years; the number of portfolios in the Fund
Complex overseen by each officer; and other directorships held by each officer. Each officer serves until his
successor is chosen and qualified or until his resignation or removal. As principals of the Advisor, each of
the following officers are interested persons of each Company, as that term is defined in Section
2(a)(19) of the 1940 Act. Additionally, each of the following officers serves as an officer of TTO.
Name, Age and Address
|
|
Position(s) Held with Each Company and Length of Time Served
|
|
Principal Occupation During Past Five Years
|
|
Number of Portfolios in Fund Complex Overseen by Director
|
|
Other Public Company Directorships Held by Director
|
David J. Schulte*, 45 10801 Mastin Blvd., Suite 222 Overland Park, KS 66210 |
|
President and Chief Executive Officer of each Company since its inception |
|
Managing Director of the Advisor since 2002; Managing Director, KCEP (1993-present). |
|
Three |
|
None |
Zachary A. Hamel*, 41 10801 Mastin Blvd., Suite 222 Overland Park, KS 66210 |
|
Secretary of each Company since its inception; Senior Vice President of TYY since 2005 |
|
Managing Director of the Advisor since 2002; Partner, Fountain Capital (1997-present). |
|
Three |
|
None |
Kenneth P. Malvey*, 41 10801 Mastin Blvd., Suite 222 Overland Park, KS 66210 |
|
Treasurer of each Company since November 2005; Senior Vice President of TYY since
2005; Assistant Treasurer of each Company from its inception to November 2005 |
|
Managing Director of the Advisor since 2002; Partner, Fountain Capital
(2002-present). Formerly, Investment Risk Manager and member of the Global Office of Investments, GE
Capitals Employers Reinsurance Corporation (1996 - 2002). |
|
Three |
|
None |
* |
Each of these officers also serves as an officer of TTO. |
Committees of the Board of
Directors. Each Companys Board of Directors currently has four standing committees: the Executive
Committee, the Audit Committee, the Nominating and Governance Committee and the Compliance Committee.
Currently, all of the non-interested directors, Messrs. Ciccotello, Graham and Heath, are the only members of
each Companys Audit Committee, Nominating and Governance Committee and Compliance Committee. Each
Companys Executive Committee currently consists of Mr. Birzer and Mr. Matlack.
|
|
Executive Committee. Each Companys Executive Committee has authority to exercise
the powers of the Board (i) where assembling the full Board in a timely manner is impracticable, (ii) to
address emergency matters, or (iii) to address matters of an administrative or ministerial nature. Messrs.
Birzer and Matlack are interested persons of each Company as defined by Section 2(a)(19) of the
1940 Act. |
|
|
Audit Committee. Each Companys Audit Committee was established in accordance with
Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (the Exchange Act), and
operates under a written charter adopted and approved by the Board, a current copy of which is available at
the Companys link on the Advisors website (www.tortoiseadvisors.com). The Audit Committee approves
and recommends to the Board the election, retention or termination of the independent registered public
accounting firm (auditors); approves services to be rendered by the auditors; monitors the
auditors performance; reviews the results of the Companys audit; determines whether to recommend
to the Board that the Companys audited financial statements be included in the Companys Annual
Report; and responds to other matters as outlined in the Audit Committee Charter. Each Audit Committee member
is independent as defined under the applicable New York Stock Exchange listing standards, and none
are interested persons of the Company as defined in the 1940 Act. |
|
|
Nominating and Governance Committee. Each Nominating and Governance Committee member is
independent as defined under the New York Stock Exchange listing standards, and none are
interested persons of the Company as defined in the 1940 Act. Each Companys Nominating and
Governance Committee operates under a written charter adopted and approved by the Board, a current copy of
which is available at the Companys link on the Advisors website (www.tortoiseadvisors.com). The
Nominating and Governance Committee: (i) identifies individuals qualified to become Board members and
recommends to the Board the director nominees for the next annual meeting of stockholders and to fill any
vacancies; (ii) monitors the structure and membership of Board committees and recommends to the Board director
nominees for each committee; (iii) reviews issues and developments related to corporate governance issues and
develops and recommends to the Board corporate governance guidelines and procedures, to the extent necessary
or desirable; (iv) has the sole authority to retain and terminate any search firm used to identify director
candidates and to approve the search firms fees and other retention terms, though it has yet to exercise
such authority; and (v) may not delegate its authority. The Nominating and Governance Committee will consider
stockholder recommendations for nominees for membership to the Board so long as such recommendations are made
in accordance with the Companys Bylaws. Nominees recommended by stockholders in compliance with the
Bylaws of the Company will be evaluated on the same basis as other nominees considered by the Nominating and
Governance Committee. Stockholders should see Stockholder Proposals and Nominations for the 2008 Annual
Meeting below for information relating to the submission by stockholders of nominees and matters for
consideration at a meeting of the Companys stockholders. Each Companys Bylaws require all
directors and nominees for directors (1) to be at least 21 years of age and have substantial expertise,
experience or relationships relevant to the business of the Company and (2) to have a masters degree in
economics, finance, business administration or accounting, to have a graduate professional degree in law from
an accredited university or college in the United States or the equivalent degree from an equivalent
institution of higher learning in another country, to have a certification as a public accountant in the
United States, to be deemed an audit committee financial expert as such term is defined in item
401 of Regulation S-K as promulgated by the SEC, or to be a current director of the Company. The Nominating
and Governance Committee has the sole discretion to determine if an individual satisfies the foregoing
qualifications. |
|
|
Compliance Committee. Each Company formed this committee in December 2005. Each
committee member is independent as defined under the New York Stock Exchange listing standards,
and none are interested persons of the Company as defined in the 1940 Act. Each Companys
Compliance Committee operates under a written charter adopted and approved by the Board. The committee reviews
and assesses managements compliance with applicable securities laws, rules and regulations; monitors
compliance with the Companys Code of Ethics; and handles other matters as the Board or committee chair
deems appropriate. |
None of the
Companies currently has a standing compensation committee. None of the Companies
have any employees and the New York Stock Exchange does not require boards of
directors of registered closed-end funds to have a standing compensation committee.
The following table shows the
number of Board and committee meetings held during the fiscal year ended November 30, 2006 for each
Company:
|
|
TYG |
|
TYY |
|
TYN |
|
Board of Directors |
|
11 |
|
10 |
|
11 |
|
Executive Committee |
|
1 |
|
1 |
|
2 |
|
Audit Committee |
|
2 |
|
2 |
|
2 |
|
Nominating and Governance Committee |
|
1 |
|
1 |
|
1 |
|
Compliance Committee |
|
1 |
|
1 |
|
1 |
|
During the 2006 fiscal year, for
each Company, all directors attended at least 75% of the aggregate of (1) the total number of meetings of the
Board and (2) the total number of meetings held by all committees of the Board on which they served. None of
the Companies has a policy with respect to Board member attendance at annual meetings. All of the directors of
each Company attended the Companys 2006 annual meeting.
Director and Officer
Compensation. None of the Companies compensates any of its directors who are interested persons nor any of
its officers. The following table sets forth certain information with respect to the compensation paid by each
Company and the Fund Complex during fiscal 2006 to each of the current directors for their services as a
director. None of the Companies has any retirement or pension plans.
Name of Person, Position
|
|
Aggregate Compensation from Company(1)
|
|
Pension or Retirement Benefits Accrued as Part of Company Expenses
|
|
Estimated Annual Benefits Upon Retirement
|
|
Total Compensation from Company and Fund Complex Paid to Directors(2)
|
|
|
|
TYG
|
|
TYY
|
|
TYN
|
|
|
|
|
|
|
|
Independent Persons |
|
Conrad S. Ciccotello |
|
$ 40,480 |
|
$ 28,880 |
|
$ 31,110 |
|
$ 0 |
|
$ 0 |
|
$100,470 |
|
John R. Graham |
|
$ 36,480 |
|
$ 26,880 |
|
$ 28,110 |
|
$ 0 |
|
$ 0 |
|
$ 91,470 |
|
Charles E. Heath |
|
$ 35,480 |
|
$ 25,880 |
|
$ 27,110 |
|
$ 0 |
|
$ 0 |
|
$ 88,470 |
|
(1) |
No amounts have been deferred for any of the persons listed in the table. |
(2) |
Fund Complex includes the three Companies TYG, TYY and TYN. |
Required Vote. With respect
to each Company, Mr. Birzer will be elected by the vote of a plurality of all common and preferred shares of
the Company present at the meeting, in person or by proxy, and Mr. Graham will be elected by the vote of a
plurality of all preferred shares of the Company present at the meeting, in person or by proxy. When there are
two vacancies for director, as is the case for each Company, a vote by plurality means the two nominees for
each Company with the highest number of affirmative votes, regardless of the votes withheld for those
candidates, will be elected. Therefore, with respect to each Company, withheld votes and broker non-votes, if
any, will not be counted towards a nominees achievement of a plurality. With respect to each Company,
each common share and each preferred share is entitled to one vote in the election of Mr. Birzer, and each
preferred share is entitled to one vote in the election of Mr. Graham.
BOARD RECOMMENDATION
THE BOARD OF DIRECTORS OF EACH
COMPANY UNANIMOUSLY RECOMMENDS THAT THE COMMON AND PREFERRED STOCKHOLDERS OF THAT COMPANY VOTE FOR
MR. BIRZER AS DIRECTOR AND THAT THE PREFERRED STOCKHOLDERS OF THE COMPANY VOTE FOR MR. GRAHAM AS A
DIRECTOR.
PROPOSAL TWO
APPROVAL TO SELL COMMON
SHARES
BELOW NET ASSET VALUE
Under the 1940 Act, each Company
may sell common shares in subsequent offerings and invest the proceeds from such subsequent public offerings
in accordance with its investment objectives, so long as the net sale price to the Company (after deduction of
underwriting fees, commissions and offering expenses) is at least equal to the net asset value per share (the
NAV) of its common shares. Additionally, the 1940 Act permits each Company to sell its common
shares below NAV with the consent of a majority of its common stockholders or under certain other
circumstances. Each Company is seeking approval of this proposal so that it may, in one or more public or
private offerings of its common stock, sell shares of its common stock at a price below its then current NAV
per share, subject to certain conditions discussed below. If approved for a Company, the authorization would
be effective for a period expiring on the date of the Companys 2008 Annual Meeting of Stockholders,
which is expected to be held in April 2008.
The Board of Directors of each
Company believes that the Company having the ability to issue its common shares below NAV in certain instances
will benefit all of the Companys stockholders. Each Company expects that it will be periodically
presented with attractive opportunities to acquire securities of United States master limited partnerships
(MLPs) (or, with respect to TYN, Canadian royalty trusts or income trusts) that require the
Company to make its investment commitment quickly. Because each Company generally attempts to remain fully
invested and does not intend to maintain cash for the purpose of making these investments, the Company may be
unable to capitalize on investment opportunities presented to it unless it quickly raises capital. The market
value of each Companys common shares, however, may periodically fall below its NAV, which is not
uncommon for closed-end funds such as the Companies. If this happens, absent the approval of this proposal,
the Company will not be able to effectively access capital markets to enable it to take advantage of
attractive investment opportunities. The Board of Directors of each Company has approved submitting this
proposal to the Companys stockholders for their approval.
The following table sets forth a
comparison as of the last day of each Companys fiscal quarter each Companys NAV per share and the
comparable closing price of the Companys common stock, as reported on the New York Stock Exchange.
|
TYG(1)
|
|
TYY(1)
|
|
TYN(1)
|
|
|
NAV
|
|
Closing Price
|
|
NAV
|
|
Closing Price
|
|
NAV
|
|
Closing Price
|
|
November 30, 2006 |
|
$ 31.82 |
|
$ 36.13 |
|
$ 26.79 |
|
$ 26.50 |
|
$ 23.70 |
|
$ 22.38 |
|
August 31, 2006 |
|
$ 29.59 |
|
$ 30.62 |
|
$ 25.16 |
|
$ 23.60 |
|
$ 26.29 |
|
$ 23.31 |
|
May 31, 2006 |
|
$ 28.91 |
|
$ 28.75 |
|
$ 24.38 |
|
$ 22.40 |
|
$ 25.44 |
|
$ 21.90 |
|
February 28, 2006 |
|
$ 27.55 |
|
$ 29.42 |
|
$ 23.36 |
|
$ 22.90 |
|
$ 25.03 |
|
$ 22.73 |
|
November 30, 2005 |
|
$ 27.12 |
|
$ 28.72 |
|
$ 23.23 |
|
$ 22.09 |
|
$ 23.95 |
|
$ 25.00 |
|
August 31, 2005 |
|
$ 29.16 |
|
$ 32.10 |
|
$ 23.98 |
|
$ 25.12 |
|
N/A |
|
N/A |
|
May 31, 2005 |
|
$ 27.75 |
|
$ 28.33 |
|
$ 23.79 |
|
$ 24.69 |
|
N/A |
|
N/A |
|
February 28, 2005 |
|
$ 28.37 |
|
$ 29.44 |
|
N/A |
|
N/A |
|
N/A |
|
N/A |
|
November 30, 2004 |
|
$ 26.53 |
|
$ 27.06 |
|
N/A |
|
N/A |
|
N/A |
|
N/A |
|
August 31, 2004 |
|
$ 24.38 |
|
$ 25.06 |
|
N/A |
|
N/A |
|
N/A |
|
N/A |
|
May 28, 2004 |
|
$ 22.67 |
|
$ 24.20 |
|
N/A |
|
N/A |
|
N/A |
|
N/A |
|
(1) |
TYG began trading on the NYSE on February 25, 2004; TYY began trading on the NYSE on May 26,
2005; and TYN began trading on the NYSE on October 27, 2005. |
Approval of this proposal for a
Company would give the Company the opportunity to raise cash and purchase attractively priced securities even
if the net sale price to the Company of its common shares is below NAV. None of the Companies anticipates
selling common shares below NAV unless the Company has identified attractive near term investment
opportunities that the directors, including a majority of disinterested directors, as defined in the 1940 Act,
reasonably believe will lead to a long-term increase in stockholder distributions. The boards of each Company
will evaluate whether the sale of common shares below NAV achieved the intended results. Further, to the
extent a Company issues common shares below NAV in a publicly registered transaction, the market
capitalization and number of publicly tradable shares of the Company will increase, thus affording all common
stockholders greater liquidity. To the extent a Company issues shares below NAV in a private transaction, the
per share price will be the fair market value as determined by the Companys Board of Directors.
Upon stockholder approval, a
Company will only sell common shares below NAV if all of the following conditions are met:
1. The per share offering price,
before deduction of underwriting fees, commissions and offering expenses, will not be less than the NAV per
share of the Companys common stock, as determined at any time within two business days prior to the
pricing of the common stock to be sold in the offering.
2. Immediately following each
offering, after deducting offering expenses and underwriting fees and commissions, the NAV per share of the
Companys common stock, as determined at any time within two business days prior to the pricing of the
common stock to be sold, would not have been diluted by greater than a total of 1% of the NAV per share of all
outstanding common stock as a result of such offering. The Company will not be subject to a maximum number of
shares that can be sold, a defined minimum sales price per share in any offering, or a maximum number of
offerings it can make so long as for each offering the number of shares offered and the price at which such
shares are sold together would not result in dilution of the NAV per share of the Companys common stock
in excess of the 1% limitation described above.
3. A majority of the
Companys independent directors makes a determination, based on information and a recommendation from the
Advisor, that they reasonably expect that the investment(s) to be made with the net proceeds of such issuance
will lead to a long-term increase in distribution growth.
As discussed below under the
caption More Information About the Meeting Investment Advisory Agreement, with respect to
each Company, the Advisor is paid a fee based upon the Companys average monthly Managed Assets (as
defined below). Therefore, the Advisors interest in determining whether to recommend that a Company
issue common shares below NAV may conflict with the interests of the Company and its stockholders. The Advisor
is controlled directly or indirectly by officers and the two interested directors of each Company, among
others. For that reason, any issuance of shares at a price below NAV must be approved by a majority of the
disinterested directors.
Before voting on this proposal or
giving proxies with regard to this matter, common stockholders should consider the potentially dilutive effect
of the issuance of shares of the Companys common stock at less than NAV per share on the NAV per
outstanding share of common stock. Any sale of common stock at a price below NAV would result in an immediate
dilution of the NAV per outstanding share to existing common stockholders of as much as 1%. There is a
connection between common share sale price and NAV because when stock is sold at a sale price below NAV per
share, the resulting increase in the number of outstanding shares is not accompanied by a proportionate
increase in the net assets of the Company. Common stockholders of a Company should also consider that holders
of the Companys common stock have no subscription, preferential or preemptive rights to acquire
additional shares of the common stock proposed to be authorized for issuance, and thus any future issuance of
common stock will dilute such stockholders holdings of common stock as a percentage of shares
outstanding to the extent stockholders do not purchase sufficient shares in the offering to maintain their
percentage interest. Further, if current stockholders of a Company either do not purchase any shares in an
offering conducted by the Company or do not purchase sufficient shares in the offering to maintain their
percentage interest, regardless of whether such offering is above or below the then current NAV, their voting
power will be diluted. Common stockholders should also consider the impact that issuances of shares of common
stock below NAV have on each Companys expense ratio. In general, assuming that a funds expenses
consist of both fixed and variable costs, any time the fund issues shares the expense ratio should decrease
because the fixed costs are spread over a larger amount of assets. If a Company issues shares of common stock
below NAV, assuming its expenses consist of both fixed and variable costs, the Companys expense ratio
will decrease; however, it will not decrease as much as it would have had the shares been issued at NAV.
Required Vote. For each
Company, the proposal must be approved by both (a) the affirmative vote of a majority of all common
stockholders of record, as of the record date, and (b) the affirmative vote of a majority of the votes cast,
in person or by proxy, at the meeting by the holders of common stock and the holders of preferred stock,
voting together as a single class. If both approvals are not obtained, the proposal will not pass.
Solely for the purpose of
determining whether a majority of the number of common stockholders of record of a Company approved the
proposal, the number of common shares held by any single stockholder will not be relevant. For the purpose of
determining whether a majority of the number of common stockholders of record of a Company approved the
proposal, abstentions and broker non-votes, if any, recorded by record owners will have the effect of a vote
against the proposal.
With respect to each Company,
solely for the purposes of determining whether a majority of the votes cast by the common stockholders and
preferred stockholders voting together as a single class approved this proposal, each common share and each
preferred share is entitled to one vote, and abstentions and broker non-votes will not be counted as votes
cast and will have no effect on the result of the vote.
BOARD RECOMMENDATION
THE BOARD OF DIRECTORS OF EACH COMPANY UNANIMOUSLY
RECOMMENDS THAT STOCKHOLDERS OF THE COMPANY VOTE FOR THE PROPOSAL TO ALLOW THE COMPANY TO SELL ITS
COMMON SHARES BELOW NET ASSET VALUE.
PROPOSAL THREE
RATIFICATION OF SELECTION OF
INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors of each
Company recommends that the stockholders of the Company ratify the selection of Ernst & Young LLP
(E&Y) as the independent registered certified public accountants (independent
auditors), to audit the financial statements of the Company for the fiscal year ending November 30,
2007. E&Ys selection was approved by each Companys Audit Committee at a meeting held on
January 16, 2007. Their selection also was ratified and approved by the vote, cast in person, of a majority of
the directors of each Company, including a majority of the directors who are not interested
persons of the Company within the meaning of the 1940 Act, and who are independent as
defined in the New York Stock Exchange listing standards, at a meeting held on January 16, 2007.
E&Y has audited the financial
statements of each Company since prior to the Companys commencement of business (TYG in February 2004;
TYY in May 2005; and TYN in October 2005) and does not have any direct financial interest or any material
indirect financial interest in any of the Companies. A representative of E&Y is expected to be available
at the meeting and to have the opportunity to make a statement and respond to appropriate questions from the
stockholders. Each Companys Audit Committee meets twice each year with representatives of E&Y to
discuss the scope of their engagement, review the financial statements of the Company and the results of their
examination.
Required Vote. E&Y will
be ratified as a Companys independent registered public accounting firm by the affirmative vote of a
majority of the votes cast, in person or by proxy, at the meeting by the holders of common stock and the
holders of preferred stock, voting together as a single class. With respect to each Company, each common share
and each preferred share is entitled to one vote on this proposal. For the purposes of the vote on this
proposal for each Company, abstentions and broker non-votes will not be counted as votes cast and will have no
effect on the result of the vote.
AUDIT COMMITTEE REPORT
The Audit Committee of each
Company reviews the Companys annual financial statements with both management and the independent
auditors.
The Audit Committee of each
Company, in discharging its duties, has met with and has held discussions with management and the
Companys independent auditors. Each Companys Audit Committee has reviewed and discussed the
Companys audited financial statements for the fiscal year ended November 30, 2006 with management.
Management of each Company has represented to the independent auditors that the Companys financial
statements were prepared in accordance with U.S. generally accepted accounting principles.
The Audit Committee of each
Company has also discussed with the independent auditors the matters required to be discussed by the Statement
on Auditing Standards No. 61 (Communications with Audit Committees). The independent auditors provided to each
Companys Audit Committee the written disclosures and the letter required by Independence Standards Board
Standard No. 1 (Independence Discussions with Audit Committees), and each Companys Audit Committee
discussed with representatives of the independent auditors their firms independence with respect to that
Company.
With respect
to each Company, based on the Audit Committees review and discussions with management and the
independent auditors, the representations of management and the reports of the independent auditors to the
committee, the Audit Committee recommended that the Board include the audited financial statements in the
Companys Annual Report for filing with the SEC.
|
The Audit Committee of each Company
Conrad S. Ciccotello (Chairman)
Charles E. Heath
John R. Graham |
INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
On January 16, 2007, each
Companys Audit Committee selected E&Y as the independent registered public accounting firm to audit
the books and records of the Company for its fiscal year ending November 30, 2007. E&Y is registered with
the Public Company Accounting Oversight Board.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
FEES AND SERVICES
The following table sets forth the
approximate amounts of the aggregate fees billed to each Company for the fiscal years ended November 30, 2006
and 2005 by E&Y, respectively:
|
TYG
|
|
TYY
|
|
TYN
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005(1)
|
|
2006
|
|
2005(2)
|
|
Audit Fees3 |
|
$160,000 |
|
$237,000 |
|
$144,000 |
|
$102,000 |
|
$137,000 |
|
$73,000 |
|
Audit-Related Fees4 |
|
$17,000 |
|
$39,000 |
|
$36,000 |
|
$8,000 |
|
$35,000 |
|
|
|
Tax Fees5 |
|
$81,000 |
|
$47,000 |
|
$42,000 |
|
$8,000 |
|
$43,000 |
|
$15,000 |
|
All Other Fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Non-Audit Fees |
|
$98,000 |
|
$86,000 |
|
$78,000 |
|
$16,000 |
|
$78,000 |
|
$15,000 |
|
(1) |
Period from March 4, 2005 to November 30, 2005. TYY was formed on March 4, 2005, and thus did
not pay E&Y any fees prior to that date. |
(2) |
Period from January 13, 2005 to November 30, 2005. TYN was formed on January 13, 2005, and
thus did not pay E&Y any fees prior to that date. |
(3) |
For professional services rendered with respect to the audit of each Companys financial
statements and the review of each Companys statutory and regulatory filings with the SEC. |
(4) |
For professional services rendered with respect to assurance related services in connection
with each Companys compliance with its rating agency guidelines. |
(5) |
For professional services for tax compliance, tax advice and tax planning. |
The Audit Committee of each
Company adopted pre-approval polices and procedures (TYG on July 15, 2004; TYY on April 15, 2005; and TYN on
January 19, 2005). Under these policies and procedures, the Audit Committee of each Company pre-approves (i)
the selection of the Companys independent registered public accounting firm, (ii) the engagement of the
independent registered public accounting firm to provide any non-audit services to the Company, (iii) the
engagement of the independent registered public accounting firm to provide any non-audit services to the
Advisor or any entity controlling, controlled by, or under common control with the Advisor that provides
ongoing services to the Company, if the engagement relates directly to the operations and financial reporting
of the Company, and (iv) the fees and other compensation to be paid to the independent registered public
accounting firm. With respect to each Company, the Chairman of the Audit Committee of the Company may grant
the pre-approval of any engagement of the independent registered public accounting firm for non-audit services
of less than $5,000, and such delegated pre-approvals will be presented to the full Audit Committee at its
next meeting for ratification. Under certain limited circumstances, pre-approvals are not required under
securities law regulations for certain non-audit services below certain de minimus thresholds. Since each
Companys respective adoption of these policies and procedures, the Audit Committee of the Company has
pre-approved all audit and non-audit services provided to the Company by E&Y. None of these services
provided by E&Y were approved by the Audit Committee pursuant to the de minimus exception under Rule
2.01(c)(7)(i)(C) or Rule 2.01(c)(7)(ii) of Regulation S-X.
In addition, in 2006 the Advisor
paid E&Y fees in the amount of $20,500 in connection with determining the Advisors compliance with
AIMR-PPS® standards in 2005 and 2004, but did not pay E&Y any fees for non-audit services in 2005. In
addition, in January 2007, the Advisor paid E&Y fees in the amount of $10,000 for general tax consultation
in 2006. These non-audit services were preapproved by each Companys audit committee. No entity
controlling, controlled by, or under common control with the Advisor that provides ongoing services to the
Company, has paid to E&Y or been billed for fees by E&Y for non-audit services rendered to the Advisor
or such entity during the fiscal years ended November 30, 2005 and November 30, 2006.
The Audit Committee of each
Company has considered whether E&Ys provision of services (other than audit services) to the
Company, the Advisor or any entity controlling, controlled by, or under common control with the Advisor that
provides services to the Company is compatible with maintaining E&Ys independence in performing
audit services.
OTHER MATTERS
The Board of Directors of each
Company knows of no other matters that are intended to be brought before the meeting. If other matters are
presented for action, the proxies named in the enclosed form of proxy will vote on those matters in their sole
discretion.
MORE INFORMATION ABOUT THE MEETING
Stockholders. At the record date,
each Company had the following number of shares issued and outstanding:
|
Common Shares |
Preferred Shares |
TYG |
|
|
|
18,232,065 |
|
|
2,800 |
|
TYY |
|
|
|
16,013,802 |
|
|
2,800 |
|
TYN |
|
|
|
4,612,640 |
|
|
600 |
|
At December 31, 2006, each
director beneficially owned (as determined pursuant to Rule 16a-1(a)(2) under the Exchange Act) shares of each
Company and in all Funds overseen by each director in the same Fund Complex having values within the indicated
dollar ranges. Other than the Fund Complex and TTO, with respect to each Company, none of the Companys
directors who are not interested persons of the Company, nor any of their immediate family members, has ever
been a director, officer or employee of the Advisor or its affiliates.
Director
|
|
Aggregate Dollar Range of Holdings in the Company(1)
|
|
Aggregate Dollar Range of Holdings in Funds Overseen by Director in Fund Complex(2)
|
|
|
TYG
|
|
TYY
|
|
TYN
|
|
Interested Persons |
|
|
|
|
|
|
|
|
|
H. Kevin Birzer |
|
Over $100,000 |
|
Over $100,000 |
|
$50,001-$100,000 |
|
Over $100,000 |
|
Terry C. Matlack |
|
Over $100,000 |
|
Over $100,000 |
|
Over $100,000 |
|
Over $100,000 |
|
Independent Persons |
|
Conrad S. Ciccotello |
|
$50,001-$100,000 |
|
$10,001-$50,000 |
|
$10,001-$50,000 |
|
Over $100,000 |
|
John R. Graham |
|
Over $100,000 |
|
Over $100,000 |
|
$10,001-$50,000 |
|
Over $100,000 |
|
Charles E. Heath |
|
Over $100,000 |
|
Over $100,000 |
|
$10,001-$50,000 |
|
Over $100,000 |
|
(1) |
Based on the closing price of each Companys common shares on the New York Stock Exchange
on December 29, 2006. |
(2) |
Includes TYG, TYY and TYN. Amounts based on the closing price of each Companys common
shares on the New York Stock Exchange on December 29, 2006. |
The following table sets forth the
securities of TTO owned beneficially by the Companys directors who are not interested
persons of the Company, as defined in Section 2(a)(19) of the 1940 Act, as of December 31, 2006. The
Advisor also serves as the investment advisor to TTO.
Name of Director |
Title of Class |
|
Value of Securities(1) |
|
Percent of Class(2) |
|
Conrad S. Ciccotello(3) |
|
Common Shares |
|
$13,700 |
|
0.04 |
|
John R. Graham(4) |
|
Common Shares |
|
$54,800 |
|
0.16 |
|
Charles E. Heath(5) |
|
Common Shares |
|
$41,100 |
|
0.12 |
|
(1) |
The value of the securities is determined by reference to TTOs most recently calculated
NAV (November 30, 2006) and includes the net value of all warrants to purchase common shares of TTO
(Warrants) held by such director because all such Warrants are assumed to be exercisable within 60
days of the date hereof. |
(2) |
The percentage of class is determined by including all shares the director could purchase if
the director exercised all Warrants the director holds, but not including the number of shares which could be
purchased by all other holders of Warrants if they exercised such Warrants. |
(3) |
Mr. Ciccotello holds these shares jointly with his wife, Elizabeth Ciccotello. |
(4) |
These
shares are held of record by the John R. Graham Trust U/A 1/3/92, John R. Graham, Trustee. |
(5) |
These
shares are held of record by the Charles E. Heath Trust No.1 U/A 2/1/92, Charles E. Heath
and Kathleen M. Heath, Trustees. |
At December 31, 2006, each
director, each officer and the directors and officers as a group, beneficially owned (as determined pursuant
to Rule 13d-3 under the Exchange Act) the following number of shares of common stock of each Company (or
percentage of outstanding shares). Unless otherwise indicated each individual has sole investment and voting
power with respect to the shares listed.
Directors and Officers
|
|
Number of Common Shares
|
|
% of Outstanding Shares
|
|
|
TYG
|
|
TYY
|
|
TYN
|
|
TYG
|
|
TYY
|
|
TYN
|
|
Independent Directors |
|
|
|
|
|
|
|
|
|
|
|
|
|
Conrad S. Ciccotello |
|
2,229.29 |
|
1,089.18 |
|
1,078.45 |
|
* |
|
* |
|
* |
|
John R. Graham |
|
10,347.05 |
(1) |
4,182.85 |
(2) |
1,056.89 |
(3) |
* |
|
* |
|
* |
|
Charles E. Heath |
|
8,000.00 |
(4) |
6,300.00 |
(5) |
1,000.00 |
(6) |
* |
|
* |
|
* |
|
Interested Directors and Officers |
|
H. Kevin Birzer |
|
32,082.32 |
(7) |
12,177.58 |
(8) |
3,853.62 |
(9) |
* |
|
* |
|
* |
|
Terry C. Matlack |
|
8,468.46 |
(10) |
7,222.30 |
(11) |
7,998.80 |
(12) |
* |
|
* |
|
* |
|
David J. Schulte |
|
3,753.48 |
(13) |
1,280.64 |
|
3,556.89 |
(14) |
* |
|
* |
|
* |
|
Zachary A. Hamel |
|
4,823.40 |
(15) |
2,817.09 |
(16) |
1,000.00 |
(17) |
* |
|
* |
|
* |
|
Kenneth P. Malvey |
|
7,766.37 |
(18) |
687.56 |
|
443.90 |
|
* |
|
* |
|
* |
|
Directors and Officers as a Group |
|
77,470.37 |
|
35,757.20 |
|
19,988.55 |
|
* |
|
* |
|
* |
|
* |
Indicates less than 1%. |
(1) |
Includes 3,000 shares held in the John R. Graham Trust, of which Mr. Graham is the sole
trustee, and 4,000 shares held by Master Teachers Employee Benefit Pension Trust, of which Mr. Graham is the
sole trustee and for which he disclaims beneficial ownership. |
(2) |
Includes 1,091.36 shares held in the John R. Graham Trust, of which Mr. Graham is the sole
trustee. |
(3) |
All shares held in the John R. Graham Trust, of which Mr. Graham is the sole trustee. |
(4) |
All shares held by the Charles E. Heath Trust, of which Mr. Heath is a trustee. |
(5) |
Includes 4,300 shares held by the Charles E. Heath Trust #1, of which Mr. Heath is a trustee,
and 2,000 shares held by the Charles F. Heath Trust #1, Trust B, of which Mr. Heath is a trustee. |
(6) |
All shares held by the Charles E. Heath Trust #1, of which Mr. Heath is a trustee. |
(7) |
Includes 23,314.35 shares Mr. Birzer holds jointly with his wife and 1,330.08 shares held by
Mr. Birzers children in accounts established under the Kansas Uniform Transfer to Minors Act for
which his wife is the custodian. |
(8) |
Includes 11,522.75 shares Mr. Birzer holds jointly with his wife and 654.82 shares held by Mr.
Birzers children in accounts established under the Kansas Uniform Transfer to Minors Act for which
his wife is the custodian. |
(9) |
Includes 3,219.48 shares Mr. Birzer owns jointly with his wife and 634.14 shares held by Mr.
Birzers children in accounts established under the Kansas Uniform Transfer to Minors Act for which
his wife is the custodian. |
(10) |
All shares are held in the Matlack Living Trust, U/A DTD 12/30/04, of which Mr. Matlack and
his wife are co-trustees and share voting and investment power with respect to the shares. |
(11) |
Includes 6,802.34 shares held in the Matlack Living Trust, U/A DTD 12/30/04, of which Mr.
Matlack and his wife are co-trustees and share voting and investment power with respect to the shares. |
(12) |
All shares are held in the Matlack Living Trust, U/A DTD 12/30/04, of which Mr. Matlack and
his wife are co-trustees and share voting and investment power with respect to the shares. |
(13) |
Excludes 695.24 shares held by Mr. Schultes former spouse and 671.97 shares held by Mr.
Schultes children in accounts over which Mr. Schulte has no voting or investment power. Mr. Schulte
disclaims beneficial ownership of these shares. |
(14) |
Excludes 306 shares held by Mr. Schultes children in accounts over which Mr. Schulte has
no voting or investment power. Mr. Schulte disclaims beneficial ownership of these shares. |
(15) |
Includes 1,122 shares Mr. Hamel holds jointly with his wife; 500 shares held by Mr.
Hamels wife and 220 shares held by Mr. Hamels children in accounts established under the Kansas
Uniform Transfer to Minors Act for which he is the custodian. |
(16) |
Includes 667 shares Mr. Hamel holds jointly with his wife; 500 shares held by Mr.
Hamels wife and 150 shares held by Mr. Hamels children in accounts established under the Kansas
Uniform Transfer to Minors Act for which he is the custodian. |
(17) |
All shares are held jointly by Mr. Hamel and his wife. |
(18) |
Includes 811.31 shares Mr. Malvey holds jointly with his wife; 2,071.58 shares held by Mr.
Malveys wife and 118.39 shares held by his child in an account for which he is the custodian. |
At December 31, 2006, to the
knowledge of TYG, no person held (sole or shared) power to vote or dispose of more than 5% of the outstanding
shares of TYG. The table below indicates the persons known to TYY and TYN to own 5% or more of their
respective common shares as of December 31, 2006. The beneficial owner listed below has sole power to vote and
dispose of the shares.
Name and Address
|
|
Number of TYY Common Shares
|
|
%
|
|
Number of TYN Common Shares
|
|
%
|
|
State Teachers Retirement System of Ohio 275 East Broad Street Columbus, Ohio 43215-3771 |
|
1,230,000 |
|
7.7 |
|
335,000 |
|
7.3 |
|
Investment Advisory
Agreement. Tortoise Capital Advisors, LLC (the Advisor) is each Companys investment
advisor. The Advisors address is 10801 Mastin Boulevard, Suite 222, Overland Park, Kansas 66210.
Fountain Capital and KCEP control the Advisor through their equity ownership and management rights in the
Advisor. As of December 31, 2006, the Advisor had approximately $2.2 billion of client assets under
management. The Advisor may be contacted at the address listed on the first page of this proxy
statement.
Pursuant to the terms of an
Advisory Agreement between TYG and the Advisor, dated February 23, 2004 (the TYG Advisory
Agreement), TYG pays to the Advisor quarterly, as compensation for the services rendered by the Advisor,
a fee equal on an annual basis to 0.95% of the Companys average monthly Managed Assets. The Advisor
contractually agreed to waive or reimburse TYG for fees and expenses, including the investment advisory fee
and other expenses in the amount of 0.23% of the average monthly Managed Assets through February 28, 2006 and
0.10% of the average monthly Managed Assets through February 28, 2009. The Advisor does not have the right to
recoup any fees waived or reimbursed by the Advisor. In its last fiscal year, TYG incurred $6,253,972 in net
fees due to the Advisor under the TYG Advisory Agreement.
Pursuant to the terms of an
Advisory Agreement between TYY and the Advisor, dated May 1, 2005 (the TYY Advisory Agreement),
TYY paid to the Advisor quarterly, as compensation for the services rendered by the Advisor, a fee equal on an
annual basis to 0.90% of the Companys average monthly Managed Assets until May 31, 2006. Since June 1,
2006, TYY pays to the Advisor a fee equal on an annual basis to 0.95% annually of TYYs average monthly
Managed Assets for such services. In its last fiscal year, TYY incurred $5,510,366 in fees due to the Advisor
under the TYY Advisory Agreement.
Pursuant to the terms of an
Advisory Agreement between TYN and the Advisor, dated October 31, 2005 (the TYN Advisory
Agreement), TYN pays to the Advisor quarterly, as compensation for the services rendered by the Advisor,
a fee equal on an annual basis to 1.00% of TYNs average monthly Managed Assets. The Advisor
contractually agreed to waive or reimburse TYN for fees and expenses, including the investment advisory fee
and expenses in an amount equal on an annual basis to 0.25% of the average monthly Managed Assets through
October 31, 2006. For the period from November 1, 2006 through December 31, 2007, the Advisor has
contractually agreed to waive a portion of the fee equal to 0.20% of the average monthly Managed Assets. In
its last fiscal year, TYN incurred $1,137,550 in net fees due to the Advisor under the TYN Advisory
Agreement.
With respect to each Company,
Managed Assets means the total assets of the Company (including any assets attributable to
leverage) minus accrued liabilities other than (1) deferred taxes or debt entered into for the purpose of
leverage and (2) the aggregate liquidation preference of any outstanding preferred shares.
The Advisor is controlled directly
or indirectly by David J. Schulte, CEO and President of each Company; Terry Matlack, a director and the Chief
Financial Officer and Assistant Treasurer of each Company; H. Kevin Birzer, director and Chairman of the Board
of each Company, Zachary A. Hamel, Secretary of each Company and Senior Vice President of TYY, and Kenneth P.
Malvey, Treasurer of each Company and Senior Vice President of TYY, among others.
How Proxies Will Be Voted.
All proxies solicited by the Board of Directors of each Company that are properly executed and received prior
to the meeting, and that are not revoked, will be voted at the meeting. Shares represented by those proxies
will be voted in accordance with the instructions marked on the proxy. If no instructions are specified,
shares will be counted as a vote FOR the proposals described in this proxy statement.
How To Vote. Complete, sign
and date the enclosed proxy card and return it in the enclosed envelope or attend the Annual Meeting and vote
in person.
Expenses and Solicitation of
Proxies. The expenses of preparing, printing and mailing the enclosed proxy card, the accompanying notice
and this proxy statement and all other costs, in connection with the solicitation of proxies will be borne by
the Companies on a pro rata basis. Each Company may also reimburse banks, brokers and others for their
reasonable expenses in forwarding proxy solicitation material to the beneficial owners of shares of the
Company. In order to obtain the necessary quorum for a Company at the meeting, additional solicitation may be
made by mail, telephone, telegraph, facsimile or personal interview by representatives of the Company, the
Advisor, the Companys transfer agent, or by brokers or their representatives or by a solicitation firm
that may be engaged by the Company to assist in proxy solicitations. If a proxy solicitor is retained by any
Company, the costs associated with all proxy solicitation are not anticipated to exceed $35,000. None of the
Companies will pay any representatives of the Company or the Advisor any additional compensation for their
efforts to supplement proxy solicitation.
Revoking a Proxy. With
respect to each Company, at any time before it has been voted, you may revoke your proxy by: (1) sending a
letter stating that you are revoking your proxy to the Secretary of the Company at the Companys offices
located at 10801 Mastin Boulevard, Suite 222, Overland Park, Kansas 66210; (2) properly executing and sending
a later-dated proxy; or (3) attending the meeting, requesting return of any previously delivered proxy, and
voting in person.
Quorum. With respect to
each Company, the presence, in person or by proxy, of holders of shares entitled to cast a majority of the
votes entitled to be cast (without regard to class) constitutes a quorum. For purposes of determining the
presence or absence of a quorum, shares present at the annual meeting that are not voted, or abstentions, and
broker non-votes (which occur when a broker has not received directions from customers and does not have
discretionary authority to vote the customers shares) will be treated as shares that are present at the
meeting but have not been voted.
With respect to each Company, if a
quorum is not present in person or by proxy at the meeting, the chairman of the meeting or the stockholders
entitled to vote at such meeting, present in person or by proxy, have the power to adjourn the meeting to a
date not more than 120 days after the original record date without notice other than announcement at the
meeting.
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE
Section 30(h) of the 1940 Act and
Section 16(a) of the Exchange Act require each Companys directors and officers, the Advisor, affiliated
persons of the Advisor and persons who own more than 10% of a registered class of the Companys equity
securities to file forms reporting their affiliation with the Company and reports of ownership and changes in
ownership of the Companys shares with the SEC and the New York Stock Exchange. Those persons and
entities are required by SEC regulations to furnish the applicable Company with copies of all Section 16(a)
forms they file. Based on a review of those forms furnished to the Company, each Company believes that its
directors and officers, the Advisor and affiliated persons of the Advisor have complied with all applicable
Section 16(a) filing requirements during the last fiscal year, except that Mr. David Schulte did not timely
report the sale of 0.7 shares of TYG in January 2006. Mr. Schulte reported this sale on a Form 4 filed on
August 11, 2006. To the knowledge of management of each Company, no person is the beneficial owner (as defined
in Rule 16a-1 under the Exchange Act) of more than 10% of a class of such Companys equity
securities.
ADMINISTRATOR
TYG and TYY have each entered into
administration agreements with US Bancorp Fund Services, LLC whose principal business address is 615 E.
Michigan Street, Milwaukee, Wisconsin 53202.
TYN has entered into an
administration agreement with SEI Investments Mutual Funds Services, whose principal business address is One
Freedom Valley Drive, Oaks, Pennsylvania 19456.
STOCKHOLDER COMMUNICATIONS
Stockholders are able to send
communications to the Board of Directors of each Company. Communications should be addressed to the Secretary
of the applicable Company at its principal offices at 10801 Mastin Boulevard, Suite 222, Overland Park, Kansas
66210. The Secretary will forward any communications received directly to the Board of Directors.
STOCKHOLDER PROPOSALS AND NOMINATIONS FOR THE
2008 ANNUAL MEETING
Method for Including Proposals
in a Companys Proxy Statement. Under the rules of the SEC, if you want to have a proposal included
in a Companys proxy statement for its next annual meeting of stockholders, that proposal must be
received by the Secretary of the Company at 10801 Mastin Boulevard, Suite 222, Overland Park, Kansas 66210,
not later than 5:00 p.m., Central Time on September 28, 2007. Such proposal must comply with all applicable
requirements of Rule 14a-8 of the Exchange Act. Timely submission of a proposal does not mean the proposal
will be included in the proxy material sent to stockholders.
Other Proposals and
Nominations. If you want to nominate a director or have other business considered at a Companys next
annual meeting of stockholders but do not want those items included in our proxy statement, you must comply
with the advance notice provision of the Companys Bylaws. Under each Companys Bylaws, nominations
for director or other business proposals to be addressed at the Companys next annual meeting may be made
by a stockholder who has delivered a notice to the Secretary of the Company at 10801 Mastin Boulevard, Suite
222, Overland Park, Kansas 66210, no earlier than September 28, 2007 nor later than 5:00 p.m. Central Time on
October 28, 2007. The stockholder must satisfy certain requirements set forth in the Companys Bylaws and
the notice must contain specific information required by the Companys Bylaws. With respect to nominees
for director, the notice must include, among other things, the name, age, business address and residence
address of any nominee for director, certain information regarding such persons ownership of Company
shares, and all other information relating to the nominee as is required to be disclosed in solicitations of
proxies in an election contest or as otherwise required by Regulation 14A under the Exchange Act. With respect
to other business to be brought before the meeting, a notice must include, among other things, a description
of the business and any material interest in such business by the stockholder and certain associated persons
proposing the business. Any stockholder wishing to make a proposal should carefully read and review the
applicable Companys Bylaws. A copy of each Companys Bylaws may be obtained by contacting the
Secretary of the Company at 1-866-362-9331 or by writing the Secretary of the Company at 10801 Mastin
Boulevard, Suite 222, Overland Park, Kansas 66210. Timely submission of a proposal does not mean the proposal
will be allowed to be brought before the meeting.
These advance
notice provisions are in addition to, and separate from, the requirements that a
stockholder must meet in order to have a proposal included in any Companys proxy
statement under the rules of the SEC.
A proxy
granted by a stockholder will give discretionary authority to the proxies to vote on
any matters introduced pursuant to the above advance notice Bylaw provisions, subject to
applicable rules of the SEC.
|
By Order of the Board of Directors
Zachary A. Hamel Secretary
|
January 26, 2007
TORTOISE ENERGY
INFRASTRUCTURE CORPORATION
TORTOISE ENERGY CAPITAL CORPORATION
TORTOISE NORTH
AMERICAN ENERGY CORPORATION
PLEASE FOLD
ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. |
[Tortoise Logo]
Proxy Tortoise
Energy Infrastructure Corporation
PROXY SOLICITED BY THE
BOARD OF DIRECTORS FOR
THE ANNUAL MEETING OF STOCKHOLDERS APRIL 13, 2007
The undersigned holder of common shares appoints
David J. Schulte and Terry C. Matlack, or either of them, each with power of substitution, to vote all shares
that the undersigned is entitled to vote at the annual meeting of stockholders of Tortoise Energy
Infrastructure Corporation to be held on April 13, 2007 and at any adjournments thereof, as set forth on the
reverse side of this card, and in their discretion upon any other business that may properly come before the
meeting.
YOUR VOTE IS IMPORTANT.
PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED POSTMARKED
ENVELOPE.
(Continued and to be signed on the reverse side)
Using a black ink pen, mark your votes with an X as shown
in [ X ]
this example. Please do not write outside the designated areas.
Annual Meeting Proxy Card
PLEASE FOLD
ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. |
This proxy, when properly
executed, will be voted in the manner directed herein and, absent direction, will be
voted FOR the proposals.
A. |
Election of Directors The Board of Directors recommends a vote FOR the
Nominee below. |
1. |
Nominee: |
For |
Withhold |
|
|
01 - H. Kevin Birzer |
[ ] |
[ ] |
|
B. |
Issues The Board of Directors recommends a vote FOR the Proposal and
Ratification below. |
2. |
Approval of the Companys sale of common shares below Net Asset Value (NAV)
subject to all of the following conditions being met: (1) the per share offering price, before deduction of
underwriting fees, commissions and offering expenses, will not be less than the NAV per share of the
Companys common stock, as determined at any time within two business days prior to the pricing of the
common stock to be sold in the offering; (2) immediately following the offering, after deducting offering
expenses and underwriting fees and commissions, the NAV per share of the Companys common stock, as
determined at any time within two business days prior to the pricing of the common stock to be sold, would not
have been diluted by greater than a total of 1% of the NAV per share of all outstanding common stock; and (3)
a majority of the Companys independent directors makes a determination, based on information and a
recommendation from the Companys investment advisor, that they reasonably expect that the investment(s)
to be made with the net proceeds of such issuance will lead to a long-term increase in distribution
growth. |
|
For |
Against |
Abstain |
|
|
[ ] |
[ ] |
[ ] |
|
3. |
Ratification of Ernst & Young LLP as the Companys independent registered public
accounting firm to audit the financial statements of the Company for the fiscal year ending November 30,
2007: |
|
For |
Against |
Abstain |
|
|
[ ] |
[ ] |
[ ] |
|
Change of Name or Address Please print new information below. |
|
Meeting Attendance |
|
|
|
|
|
Mark box to the right if you plan to attend the Annual Meeting. |
|
o |
|
D. |
Authorized Signatures This section must be completed for your vote to be counted.
Date and Sign Below |
Please sign exactly as your
name appears. If acting as attorney, executor, trustee, or in representative
capacity, sign name and indicate title.
Date (mm/dd/yyyy) Please print date below. |
|
Signature 1 Please keep signature within the box. |
|
Signature 2 Please keep signature within the box. |
/
/
|
|
|
|
|
PLEASE FOLD
ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. |
[Tortoise Logo]
Proxy Tortoise
Energy Infrastructure Corporation
PROXY SOLICITED BY THE
BOARD OF DIRECTORS FOR
THE ANNUAL MEETING OF STOCKHOLDERS APRIL 13, 2007
The undersigned holder of preferred shares
appoints David J. Schulte and Terry C. Matlack, or either of them, each with power of substitution, to vote
all shares that the undersigned is entitled to vote at the annual meeting of stockholders of Tortoise Energy
Infrastructure Corporation to be held on April 13, 2007 and at any adjournments thereof, as set forth on the
reverse side of this card, and in their discretion upon any other business that may properly come before the
meeting.
YOUR VOTE IS IMPORTANT.
PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED POSTMARKED
ENVELOPE.
(Continued and to be signed on the reverse side)
Using a black ink pen, mark your votes with an X as shown
in [ X ]
this example. Please do not write outside the designated areas.
Annual Meeting Proxy Card
PLEASE FOLD
ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. |
This proxy, when properly
executed, will be voted in the manner directed herein and, absent direction, will be
voted FOR the proposals.
A. |
Election of Directors The Board of Directors recommends a vote FOR the
Nominees below. |
1. |
Nominee: |
For |
Withhold |
|
|
01 - H. Kevin Birzer |
[ ] |
[ ] |
|
|
02 - John R. Graham |
[ ] |
[ ] |
|
B. |
Issues The Board of Directors recommends a vote FOR the Proposal and
Ratification below. |
2. |
Approval of the Companys sale of common shares below Net Asset Value (NAV)
subject to all of the following conditions being met: (1) the per share offering price, before deduction of
underwriting fees, commissions and offering expenses, will not be less than the NAV per share of the
Companys common stock, as determined at any time within two business days prior to the pricing of the
common stock to be sold in the offering; (2) immediately following the offering, after deducting offering
expenses and underwriting fees and commissions, the NAV per share of the Companys common stock, as
determined at any time within two business days prior to the pricing of the common stock to be sold, would not
have been diluted by greater than a total of 1% of the NAV per share of all outstanding common stock; and (3)
a majority of the Companys independent directors makes a determination, based on information and a
recommendation from the Companys investment advisor, that they reasonably expect that the investment(s)
to be made with the net proceeds of such issuance will lead to a long-term increase in distribution
growth. |
|
For |
Against |
Abstain |
|
|
[ ] |
[ ] |
[ ] |
|
3. |
Ratification of Ernst & Young LLP as the Companys independent registered public
accounting firm to audit the financial statements of the Company for the fiscal year ending November 30,
2007: |
|
For |
Against |
Abstain |
|
|
[ ] |
[ ] |
[ ] |
|
Change of Name or Address Please print new information below. |
|
Meeting Attendance |
|
|
|
|
|
Mark box to the right if you plan to attend the Annual Meeting. |
|
o |
|
D. |
Authorized Signatures This section must be completed for your vote to be counted.
Date and Sign Below |
Please sign exactly as your
name appears. If acting as attorney, executor, trustee, or in representative
capacity, sign name and indicate title.
Date (mm/dd/yyyy) Please print date below. |
|
Signature 1 Please keep signature within the box. |
|
Signature 2 Please keep signature within the box. |
/
/
|
|
|
|
|