Kayne Anderson Energy Infrastructure Fund Completes Private Placement of $75 Million of Notes
Rhea-AI Summary
Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) announced the completion of a private placement of $75 million in senior unsecured notes. Proceeds will be used to refinance existing leverage and for general corporate purposes.
The notes are divided into two series: $35 million at a fixed rate of 5.65%, maturing on May 22, 2031, and $40 million at a fixed rate of 5.79%, maturing on May 22, 2034. These notes will not be registered under the Securities Act of 1933 and cannot be sold in the U.S. without proper registration or an exemption.
KYN aims to provide high after-tax returns and cash distributions, investing at least 80% of its assets in Energy Infrastructure Companies. Distribution amounts may vary due to portfolio changes and market conditions.
Positive
- Completion of $75 million private placement enhances liquidity.
- Refinancing existing leverage could improve financial stability.
- Notes offer fixed rates of 5.65% and 5.79%, providing predictable interest costs.
Negative
- Notes will not be registered under the Securities Act, limiting potential resale options.
- Future distribution amounts are not guaranteed and may be adjusted.
News Market Reaction – KYN
In the trading session that priced this news, KYN declined 0.10%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
HOUSTON, May 20, 2024 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) announced today that it completed a private placement of
Net proceeds from the issuance will be used to refinance existing leverage and for general corporate purposes. The table below sets forth the key terms of the Notes issued:
| Notes Series | Amount ($ in millions) | Fixed Rate | Maturity |
| WW | May 22, 2031 | ||
| XX | May 22, 2034 | ||
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
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.
