SOURCE: Center Coast MLP & Infrastructure Fund
HOUSTON, TX--(Marketwired - Sep 26, 2013) - Center Coast MLP & Infrastructure Fund (the "Fund") (NYSE: CEN) has successfully completed its initial public offering agreeing to sell 14,525,000 common shares at a price of $20 per share for a total of $290,500,000 in gross proceeds (before deduction of the sales load and offering expenses). Up to 2,175,000 additional common shares may be issued upon exercise of the underwriters' overallotment option, which may not occur. Assuming full exercise of the overallotment option, total gross proceeds of the offering (before deduction of the sales load and offering expenses) would be $334,000,000. The Fund's common shares begin trading today on the New York Stock Exchange under the symbol "CEN."
The Fund is a non-diversified closed-end fund. The Fund's investment objective is to provide a high level of total return with an emphasis on distributions to shareholders. The "total return" sought by the Fund includes appreciation in the net asset value of the Fund's common shares and all distributions made by the Fund to its common shareholders, regardless of the tax characterization of such distributions, including distributions characterized as return of capital. The Fund seeks to achieve its investment objective by investing primarily in a portfolio of master limited partnerships ("MLPs") and energy infrastructure companies. Under normal market conditions, the Fund will invest at least 80% of its Managed Assets in securities of MLPs and energy infrastructure companies. The Fund may invest up to 20% of its Managed Assets in unregistered or restricted securities, including securities issued by private companies. It is anticipated the Fund will utilize leverage as part of its investment strategy. There is no assurance that the Fund will achieve its investment objectives or be able to structure its investment portfolio as anticipated.
Center Coast Capital Advisors, LP ("Center Coast") serves as the Fund's investment advisor and is responsible for the management of the Fund. Center Coast is a registered investment advisor headquartered in Houston, Texas focused on energy infrastructure investments. Center Coast combines the expertise of midstream and energy infrastructure operators and financial and investment professionals. The Fund is managed by Dan Tutcher and Rob Chisholm, two MLP industry veterans that have owned, operated and invested in midstream energy assets for over 40 years. As former CEO/management of one of the largest MLPs, they have historically analyzed, operated or purchased a large number of the assets within the MLP sector. Center Coast currently has over $2.3 billion in MLP assets under management.
The lead managers of the underwriting syndicate were Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and RBC Capital Markets, LLC.
The Fund is a newly organized registered closed-end investment company with no operating history. Shares of closed-end investment companies, such as the Fund, frequently trade at a discount to their net asset value, which may increase investors' risk of loss.
Investors should consider the Fund's investment objective, risks, charges and expenses carefully before investing. The prospectus, which contains this and other important information about the Fund, should be read carefully before investing. For a copy of the prospectus, please contact a securities representative. Investors may also obtain a prospectus free of charge from the Securities and Exchange Commission's website at www.sec.gov.
This document is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale or offer of these securities, in any jurisdiction where such sale or offer is not permitted.
Investing in the Fund involves risk, including possible loss of principal invested. The Fund is not a complete investment program and you may lose money investing in the Fund.
Because of the Fund's concentration in MLP investments, the Fund is not eligible to be treated as a "regulated investment company" under the Internal Revenue Code of 1986, as amended (the "Code"). Instead, the Fund will be treated as a regular corporation for U.S. federal income tax purposes and, as a result, unlike most investment companies, will be subject to corporate income tax to the extent the Fund recognizes taxable income.
The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and will not elect to be treated as a regulated investment company under the Code. Accordingly, the Fund may concentrate its investments in a limited number of companies. As a result, the Fund's returns may fluctuate as a result of any single economic, political or regulatory occurrence affecting, or in the market's assessment of, such portfolio companies to a greater extent than those of a diversified investment company.
Because the Fund is focused in MLP and infrastructure companies operating in the industry or group of industries that make up the energy sector of the economy, the Fund may be more susceptible to risks associated with such sector. A downturn in such sector could have a larger impact on the Fund than on an investment company that does not concentrate in such sector. At times, the performance of securities of companies in the energy sector may lag the performance of other sectors or the broader market as a whole.