Kayne Anderson NextGen Energy&Infras - KMF STOCK NEWS

On April 24, 2023, KA Fund Advisors announced a modification to the merger terms between Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) and Kayne Anderson NextGen Energy & Infrastructure (NYSE: KMF). The merger aims to streamline the combination into a single transaction, providing KMF investors the option to exchange their shares for either newly issued KYN stock or cash. The exchange ratio will depend on the relative net asset values (NAV) of both funds prior to closing. As of March 24, 2023, KYN's NAV was $9.51 and KMF's was $8.41. The merger is expected to be tax-free. Kayne Anderson has also agreed to management fee waivers, reducing thresholds for fee waivers significantly, impacting approximately $0.7 million annually for three years. Stockholder meetings for approval are slated for June 20, 2023.

Kayne Anderson NextGen Energy & Infrastructure, Inc. (NYSE: KMF) has successfully completed a private placement of $40 million in 5.18% Series F senior unsecured notes. The proceeds from this placement will be utilized to refinance existing leverage and for general corporate purposes.

The Fund, focusing on Energy and Infrastructure sectors, aims to provide high total returns with a strong emphasis on cash distributions to its shareholders. KMF invests at least 80% of its assets in securities of energy and infrastructure companies, particularly those benefiting from the Energy Transition.

This announcement reflects the Fund's ongoing commitment to maintaining robust financial health and operational stability.

On April 3, 2023, Kayne Anderson NextGen Energy & Infrastructure reported its financial position as of March 31, 2023. The fund's net assets totaled $421.1 million, with a net asset value per share of $8.92. The asset coverage ratio for senior securities was 644%, while the total leverage ratio stood at 433%. The portfolio is diversified across various sectors, including Midstream (44%), Natural Gas & LNG (24%), Renewable Infrastructure (19%), and Utilities (13%). As of the reporting date, the fund had 47,197,462 common shares outstanding.

On March 27, 2023, Kayne Anderson announced a definitive merger agreement between Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) and Kayne Anderson NextGen Energy & Infrastructure Fund (NYSE: KMF). The merger, unanimously approved by both funds' Boards, will see KMF stockholders receive KYN common stock in an NAV-for-NAV exchange. Key highlights include a tender offer for 15% of KMF shares and management fee waivers for KYN. The merger is expected to be tax-free for stockholders and will align both funds with favorable trends in the energy sector. KYN plans to increase its quarterly distribution twice, resulting in a 10% total increase post-merger.

Kayne Anderson NextGen Energy & Infrastructure has announced a quarterly distribution of $0.16 per share for the fiscal quarter ending February 28, 2023. This payment will be made to common stockholders on April 17, 2023. The estimated return of capital for this distribution is 80%, based on the Fund's anticipated earnings and profits. The ex-date is set for April 6, 2023, while the record date is April 10, 2023. The Fund, which invests primarily in energy and infrastructure companies, aims to deliver high total returns and maintain cash distributions to its shareholders.

As of February 28, 2023, Kayne Anderson NextGen Energy & Infrastructure (NYSE: KMF) reported net assets of $420.4 million and a net asset value per share of $8.91. The Fund's asset coverage ratios were strong, with 643% for senior securities and 432% for total leverage. Investments were primarily in equity (99%), with the largest sectors being Midstream (43%) and Natural Gas & LNG (24%). The Fund's top holdings include Enterprise Products Partners L.P. and The Williams Companies, Inc. The Fund aims to provide significant cash distributions while investing heavily in energy transition companies.

Kayne Anderson NextGen Energy & Infrastructure has secured a $45 million unsecured revolving credit facility, maturing on February 23, 2024. This replaces a previous $50 million facility due on February 24, 2023. The interest on borrowings ranges from SOFR plus 1.40% to SOFR plus 2.25%, with current rates set at SOFR plus 1.40%. As of February 24, 2023, $6 million was drawn from this facility. The Fund focuses on investing at least 80% of its assets in securities related to Energy and Infrastructure companies, particularly those involved in the Energy Transition.