tygnq22809.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)



11550 Ash Street, Suite 300, Leawood, KS 66211
(Address of principal executive offices) (Zip code)



David J. Schulte
11550 Ash Street, Suite 300, Leawood, KS 66211
(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 28, 2009



 
Item 1. Schedule of Investments.

Tortoise Energy Infrastructure Corporation
            
SCHEDULE OF INVESTMENTS (Unaudited)
            
               
     
February 28, 2009   
  
Master Limited Partnerships and Related Companies - 161.8% (1)
  
Shares
    
Fair Value
  
Crude/Refined Products Pipelines - 82.1% (1)
            
United States - 82.1% (1)
            
Buckeye Partners, L.P.
    
415,074
     $
16,395,423
  
Enbridge Energy Partners, L.P.
    
713,745
      
20,320,320
  
Enbridge Energy Partners, L.P. (2) (3)
    
1,112,021
      
31,403,487
  
Holly Energy Partners, L.P.
    
417,370
      
10,634,588
  
Kinder Morgan Management, LLC (3)
    
1,501,120
      
62,626,726
  
Magellan Midstream Partners, L.P.
    
1,763,298
      
56,072,876
  
NuStar Energy L.P.
    
1,023,389
      
47,219,168
  
NuStar GP Holdings, LLC
    
131,228
      
2,486,771
  
Plains All American Pipeline, L.P.
    
1,290,831
      
49,748,627
  
SemGroup Energy Partners, L.P.
    
342,162
      
940,946
  
Sunoco Logistics Partners L.P.
    
848,733
      
46,671,828
  
TEPPCO Partners, L.P.
    
516,918
      
11,765,054
  
               
356,285,814
  
                   
Natural Gas/Natural Gas Liquids Pipelines - 50.6% (1)
                
United States - 50.6% (1)
                
Boardwalk Pipeline Partners, LP
    
939,693
      
19,827,522
  
El Paso Pipeline Partners, L.P.
    
1,061,700
      
18,717,771
  
El Paso Pipeline Partners, L.P. (2)
    
291,000
      
5,104,140
  
Energy Transfer Equity, L.P.
    
557,310
      
10,939,995
  
Energy Transfer Partners, L.P.
    
1,537,995
      
55,690,799
  
Enterprise GP Holdings L.P.
    
67,993
      
1,330,623
  
Enterprise Products Partners L.P.
    
2,038,861
      
43,998,620
  
ONEOK Partners, L.P.
    
182,821
      
7,746,126
  
Spectra Energy Partners, LP
    
445,470
      
9,880,525
  
TC PipeLines, LP
    
1,271,206
      
32,886,099
  
Williams Pipeline Partners L.P.
    
836,875
      
13,272,838
  
               
219,395,058
  
                   
Natural Gas Gathering/Processing - 16.2% (1)
                
United States - 16.2% (1)
                
Copano Energy, L.L.C.
    
1,238,789
      
17,615,580
  
Copano Energy, L.L.C. (2) (4)
    
285,740
      
3,488,885
  
Crosstex Energy, L.P.
    
36,480
      
126,221
  
Crosstex Energy, L.P. (2) (4)
    
193,767
      
697,561
  
DCP Midstream Partners, LP
    
406,850
      
4,385,843
  
Duncan Energy Partners L.P.
    
392,298
      
6,398,380
  
Exterran Partners, L.P.
    
322,193
      
3,946,864
  
MarkWest Energy Partners, L.P.
    
2,201,640
      
23,689,646
  
Targa Resources Partners LP
    
321,426
      
2,719,264
  
Western Gas Partners LP
    
205,075
      
3,008,450
  
Williams Partners L.P.
    
373,900
      
4,094,205
  
               
70,170,899
  
                   
Propane Distribution - 9.9% (1)
                
United States - 9.9% (1)
                
Inergy, L.P.
    
1,846,374
      
41,580,343
  
Inergy Holdings, L.P.
    
49,715
      
1,386,054
  
               
42,966,397
  
                   
Shipping - 3.0% (1)
                
Republic of the Marshall Islands - 0.7% (1)
                
Teekay LNG Partners L.P.
    
156,200
      
2,875,642
  
United States - 2.3% (1)
                
K-Sea Transportation Partners L.P.
    
596,470
      
9,961,049
  
               
12,836,691
  
                   
Total Master Limited Partnerships and Related Companies (Cost $658,216,629)
            
701,654,859
  
                   
Short-Term Investments - 3.7% (1)
                
United States Investment Companies - 3.7% (1)
                
First American Government Obligations Fund - Class Y, 0.27% (5)
    
2,046,309
      
2,046,309
  
Merrill Lynch Premier Institutional Fund, 0.94% (5)
    
14,004,493
      
14,004,493
  
                   
Total Short-Term Investments (Cost $16,050,802)
            
16,050,802
  
                   
Total Investments - 165.5% (1) (Cost $674,267,431)
            
717,705,661
  

                   
Liabilities in Excess of Cash and Other Assets - (10.2%) (1)
             (44,007,802 )
                   
Long-Term Debt Obligations - (39.2%) (1)
             (170,000,000 )
                   
Preferred Shares at Redemption Value - (16.1%) (1)
             (70,000,000 )
Total Net Assets Applicable to Common Stockholders - 100.0% (1)
           $
433,697,859
  
                   
                   
(1)  Calculated as a percentage of net assets applicable to common stockholders.
(2)  Restricted securities have been fair valued in accordance with procedures approved by the Board of Directors and have a total fair value
of $40,694,073, which represents 9.4% of net assets. 
(3)  Security distributions are paid-in-kind.
(4)  Non-income producing.
(5)  Rate indicated is the current yield as of February 28, 2009.
 
Various inputs are used in determining the value of the Company’s investments.  These inputs are summarized in the three broad levels listed below:

   Level 1 – quoted prices in active markets for identical investments
 
 Level 2 – other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.)
 
Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. 
 
The following table provides the fair value measurements of applicable Company assets by level within the fair value hierarchy as of February 28, 2009.  These assets are measured on a recurring basis.

     
Fair Value Measurements at Reporting Date Using
     
Quoted Prices in
  
Significant
     
Active Markets for
Significant Other
Unobservable
 
Fair Value at
  
Identical Assets
Observable Inputs
Inputs
Description
February 28, 2009
  
(Level 1)
(Level 2)
(Level 3)
           
Investments
 $  717,705,661
  
 $   677,011,588
 $    36,507,627
        $    4,186,446


 
Fair Value Measurements Using Significant Unobservable Inputs 
 
 (Level 3) for Investments
 
For the period from December 1, 2008 to February 28, 2009
Fair value beginning balance
$  3,924,726
Total unrealized gains included in net increase in net assets applicable to common stockholders
 
  261,720
Net purchases, issuances and settlements
                         -
Return of capital adjustments impacting cost basis of security
                         -
Transfers into Level 3
                         -
Fair value ending balance
$  4,186,446

The Company utilizes the beginning of reporting period method for determining transfers into or out of Level 3.  Accordingly, this method is the basis for presenting the rollforward in the preceding table. Under this method, the fair value of the asset at the beginning of the period will be disclosed as a transfer into or out of Level 3, gains or losses for an asset that transfers into Level 3 during the period will be included in the reconciliation, and gains or losses for an asset that transfers out of Level 3 will be excluded from the reconciliation.
 
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 share and percent of net assets which the securities comprise at February 28, 2009.

Investment Security
Number of Shares
Acquisition Date
Acquisition
Cost
Fair Value
Per Share
Fair Value as Percent of
Net Assets
Copano Energy, L.L.C.
Class D Common Units
  285,740
3/14/08
$  7,500,675
$  12.21
0.8%
Crosstex Energy, L.P.
Series D Subordinated Units
  193,767
3/23/07
    5,000,002
     3.60
0.2
El Paso Pipeline Partners, L.P.
Common Units
  291,000
9/30/08
    4,999,962
   17.54
1.2
Enbridge Energy Partners, L.P.
Class C Common Units
1,112,021
4/02/07
  50,000,000
   28.24
7.2
       
$67,500,639
  
9.4%
 
As of February 28, 2009, the aggregate cost of securities for federal income tax purposes was $583,453,274.  At February 28, 2009, the aggregate gross unrealized appreciation for all securities in which there was an excess of fair value over tax cost was $175,497,269, the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over fair value was $41,244,882 and the net unrealized appreciation was $134,252,387.
 
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 22, 2009
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 22, 2009
By:
/s/ David J. Schulte  
    David J. Schulte  
    President and Chief Executive Officer  
       
  Tortoise Energy Infrastructure Corporation  
       
Date:  April 22, 2009
By:
/s/ Terry Matlack  
    Terry Matlack   
    Chief Financial Officer