Tortoise Capital Resources Corp. (NYSE: TTO) has invested USD9.9 million indirectly into Lightfoot Capital Partners, LP (Lightfoot), which owns a refined products storage business, Arc Terminals LP (Arc).
Arc is an independent operator of above ground storage and delivery services for petroleum products and chemicals including refined products, renewable fuels and crude oil. Since its inception in 2007, Arc’s business has grown to more than 3.5 million barrels of storage capacity located at eleven terminals in eight states.
"We have a track record of success with Chief Executive Officer Vince Cubbage and his team at Lightfoot," says Ed Russell, President of TTO. "Lightfoot’s assets include Arc units as well as cash that may be used for near-term acquisitions and development growth opportunities. We anticipate a yield of 4.5 percent based on the current distribution paid by Arc and we expect our distribution to grow to around 8 percent as Lightfoot reaches full investment."
David Schulte, Chief Executive Officer of TTO, says: “We are actively engaged in originating new investments for TTO with the help of Corridor Energy. Although the Lightfoot investment is not REIT-qualifying, the nature of its assets and the quality of its team are representative of investments we are targeting.”
