Kayne Anderson Energy Infrastructure Fund Completes Private Placement of $100 Million of Notes

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) on October 15, 2025 completed a private placement of $100 million of senior unsecured notes to refinance existing leverage and for general corporate purposes.

The issuance comprised two series: Series AAA $60M, 4.43% fixed, due October 2028, and Series BBB $40M, 4.60% fixed, due October 2030. The notes are unregistered under the Securities Act and may not be offered or sold in the U.S. absent registration or an applicable exemption.

Positive

• $100 million of senior unsecured notes completed
• Series AAA: $60M at 4.43% due Oct 2028
• Series BBB: $40M at 4.60% due Oct 2030
• Proceeds designated to refinance existing leverage

Negative

• Notes are senior unsecured, offering no collateral protection
• Interest cost fixed at 4.43% and 4.60% increases future cash interest obligations
• Notes are unregistered, restricting resale without exemption

Insights

Credit/Capital Markets Analyst

KYN completed a $100 million private-note placement to refinance leverage; modestly positive for liquidity but watch interest and maturity profile.

The Company issued Kayne Anderson Energy Infrastructure Fund, Inc. senior unsecured notes totaling $100,000,000 split into $60,000,000 at 4.43% maturing October 2028 and $40,000,000 at 4.60% maturing October 2030. This provides immediate cash to refinance existing leverage and for general corporate purposes, replacing prior obligations with clearly defined fixed-rate debt.

Key dependencies and risks include the unsecured nature of the notes, the fixed-coupon exposure to rising rates until maturity, and the need to service these obligations from distributions and portfolio income. Refinancing reduces near-term funding uncertainty but retains medium-term interest expense and reinvestment risk at the stated coupons.

Monitor the Company’s use of proceeds, any changes in distribution policy tied to leverage, and covenant or liquidity disclosures in upcoming filings; expect relevant updates in the next 12–36 months around the October 2028 and October 2030 maturities.

HOUSTON, Oct. 15, 2025 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) announced today that it completed its previously announced private placement of $100 million of senior unsecured notes (“Notes”).

Net proceeds from the issuance will be used to refinance existing leverage and for general corporate purposes. The table below sets forth the key terms of the Notes issued:

Notes Series	Amount ($ in millions)		Fixed Rate	Maturity
AAA	$60		4.43%	October 2028
BBB	$40		4.60%	October 2030

The Notes issued in connection with this private placement will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The Company’s investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. KYN intends to achieve this objective by investing at least 80% of its total assets in securities of Energy Infrastructure Companies. See Glossary of Key Terms in the Company’s most recent quarterly report for a description of these investment categories and the meaning of capitalized terms.

The Company pays cash distributions to common stockholders at a rate that may be adjusted from time to time. Distribution amounts are not guaranteed and may vary depending on a number of factors, including changes in portfolio holdings and market conditions. 

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer or sale is not permitted. Nothing contained in this press release is intended to recommend any investment policy or investment strategy or consider any investor’s specific objectives or circumstances. Before investing, please consult with your investment, tax, or legal adviser regarding your individual circumstances.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This communication contains statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events. These and other statements not relating strictly to historical or current facts constitute forward-looking statements as defined under the U.S. federal securities laws. Forward-looking statements involve a variety of risks and uncertainties. These risks include but are not limited to changes in economic and political conditions; regulatory and legal changes; energy industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in detail in the Company’s filings with the SEC, available at www.kaynefunds.com or www.sec.gov. Actual events could differ materially from these statements or our present expectations or projections. You should not place undue reliance on these forward-looking statements, which speak only as of the date they are made. Kayne Anderson undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Company’s investment objectives will be attained.

Contact investor relations at 877-657-3863 or cef@kayneanderson.com.

FAQ

What did KYN announce on October 15, 2025 regarding debt financing?

KYN completed a private placement of $100 million of senior unsecured notes to refinance leverage and for general corporate purposes.

What are the terms of the notes issued by KYN (NYSE: KYN) in October 2025?

Two series: $60M at 4.43% due Oct 2028, and $40M at 4.60% due Oct 2030.

How will KYN use the net proceeds from the $100M private placement?

Net proceeds will be used to refinance existing leverage and for general corporate purposes.

Are the KYN notes from the October 2025 private placement registered for U.S. resale?

No; the notes were not registered under the Securities Act and may not be offered or sold in the U.S. absent registration or an applicable exemption.

Do KYN shareholders face dilution from this October 2025 debt issuance?

No shareholder dilution is indicated; the transaction issued debt, not equity.