TortoiseEcofin Announces Constituent Changes Due to Corporate Action

Rhea-AI Summary

TortoiseEcofin has announced that Enviva Partners, LP (EVA) will be removed from the Tortoise MLP Index due to its corporate structure change from a limited partnership to a corporation. This removal will take effect at market open on January 3, 2022, following a special rebalance at market close on December 31, 2021. The change is triggered by corporate actions that affect the index's weighting, exceeding a 7.5% threshold. The Tortoise MLP Index is a capitalization-weighted index comprised of energy MLPs.

Positive

• EVA's change to a corporate structure may attract a broader investor base due to increased visibility and potential stability.
• The removal from the Tortoise MLP Index could reduce volatility associated with fluctuating MLP status.

Negative

• Removal from the Tortoise MLP Index may lead to reduced liquidity as passive investors tracking the index will no longer own EVA.
• The transition from limited partnership to corporate structure may result in tax implications for existing shareholders.

OVERLAND PARK, Kan.--(BUSINESS WIRE)-- TortoiseEcofin today announced that Enviva Partners, LP (NYSE: EVA) will be removed from the Tortoise MLP Index^® (TMLP) as a result of the approved corporate structure change from a limited partnership to a corporation. Due to the conversion, EVA will be removed from the index at market open on Monday, January 3, 2022.

As the current weight is above the weighting threshold that triggers a special rebalance, EVA will be removed with a special rebalancing from TMLP effective as of the market close on December 31, 2021.

Special rebalancings in TMLP are triggered by corporate actions such as mergers, bankruptcies, liquidations, and conversions in which the resulting weight of a single constituent exceeds the index’s 7.5% threshold and the target constituent weight exceeds certain weighting thresholds. Implementation of special rebalancings will be made in accordance with existing methodologies.

About TortoiseEcofin

TortoiseEcofin focuses on essential assets – those assets and services that are indispensable to the economy and society. We strive to make a positive impact on clients and communities by investing in energy infrastructure and the transition to cleaner energy and by providing capital for social impact projects focused on education and senior housing. TortoiseEcofin brings together strong legacies from Tortoise, with expertise investing across the energy value chain for more than 20 years, and from Ecofin, which unites ecology and finance and has roots back to the early 1990s. To learn more, visit www.TortoiseEcofin.com.

The Tortoise MLP Index^® is a float-adjusted, capitalization weighted index of energy master limited partnerships (MLPs). The index is comprised of publicly traded companies organized in the form of limited partnerships or limited liability companies engaged in transportation, production, processing and/or storage of energy commodities.

The Tortoise MLP Index^® is the exclusive property of TIS Advisors, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Tortoise MLP Index®. The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index. “Calculated by S&P Dow Jones Indices” and its related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by TIS Advisors and its affiliates. S&P^® is a registered trademark of Standard & Poor’s Financial Services LLC (“SPFS”), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”).

This data is provided for informational purposes only and is not intended for trading purposes. This document shall not constitute an offering of any security, product or service. The addition, removal or inclusion of a security in the index is not a recommendation to buy, sell or hold that security, nor is it investment advice. The information contained in this document is current as of the publication date. Tortoise makes no representations with respect to the accuracy or completeness of these materials and will not accept responsibility for damages, direct or indirect, resulting from an error or omission in this document. The methodology involves rebalancing and maintenance of the index that is made periodically during each year and may not, therefore, reflect real time information.

Safe Harbor Statement

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211230005294/en/

Maggie Zastrow, (913) 981-1020 or info@tortoiseecofin.com

 

Source: TortoiseEcofin

FAQ

Why is Enviva Partners, LP (EVA) being removed from the Tortoise MLP Index?

Enviva Partners, LP (EVA) is being removed due to its corporate structure change from a limited partnership to a corporation.

When will the removal of EVA from the Tortoise MLP Index take effect?

EVA will be removed at market open on January 3, 2022, with a special rebalance effective as of market close on December 31, 2021.

What are the implications of EVA's removal from the Tortoise MLP Index?

The removal may decrease liquidity for EVA as passive index fund investors will no longer hold the stock.

What triggers a special rebalance in the Tortoise MLP Index?

Special rebalancings are triggered by corporate actions like mergers, liquidations, and structure changes that impact index weightings.