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

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund (NYSE:KYN) has secured a private placement agreement for $100 million in senior unsecured notes with institutional investors. The placement consists of two series: $60 million Series AAA notes at 4.43% maturing in October 2028 and $40 million Series BBB notes at 4.60% maturing in October 2030.

The transaction is expected to close around October 15, 2025, subject to due diligence and standard closing conditions. The proceeds will be used to refinance existing leverage and for general corporate purposes. The notes will not be registered under the Securities Act of 1933 and have restricted trading conditions.

Positive

• Secured $100 million in new financing through private placement
• Competitive fixed interest rates of 4.43% and 4.60% for the note series
• Staggered maturity dates (2028 and 2030) provide debt structure flexibility
• Refinancing existing leverage could potentially improve debt terms

Negative

• Additional debt burden of $100 million on the balance sheet
• Trading restrictions on notes due to unregistered status under Securities Act

Insights

Fixed Income Specialist

KYN secures $100M in private notes at favorable rates to refinance debt, strengthening its financial position while maintaining leverage flexibility.

Kayne Anderson Energy Infrastructure Fund's $100 million private placement of senior unsecured notes represents a strategic refinancing move that warrants attention. The transaction features two tranches: $60 million at 4.43% maturing in October 2028 and $40 million at 4.60% maturing in October 2030.

These fixed rates are particularly compelling in the current market environment. For context, the 3-year Treasury yield currently hovers around 3.9%, making KYN's 4.43% rate for its 3-year notes reflect a credit spread of roughly 53 basis points. Similarly, the 5-year Treasury yield sits near 4.0%, placing the 4.60% rate for the 5-year notes at a 60 basis point spread. These tight spreads indicate institutional investors view KYN's credit quality favorably.

The staggered maturity structure (2028/2030) provides the fund with balanced refinancing risk, avoiding a single large maturity cliff. By explicitly stating the proceeds will refinance existing leverage, management is signaling this isn't about increasing the fund's leverage but rather optimizing its debt structure and potentially reducing interest costs.

For a closed-end fund like KYN, efficient leverage management directly impacts distributable cash flow. This refinancing potentially enhances distribution stability, especially given the fund's stated objective of providing high after-tax returns with an emphasis on distributions to stockholders.

HOUSTON, Sept. 17, 2025 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) announced today that it reached an agreement with institutional investors relating to a private placement of $100 million of senior unsecured notes (“Notes”). The private placement is expected to close on or about October 15, 2025.

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

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

Closing of this transaction is subject to investor due diligence, legal documentation, and other standard closing conditions. 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 is the size and structure of KYN's new private placement of notes?

KYN's private placement consists of $100 million in senior unsecured notes, split between $60 million Series AAA notes at 4.43% maturing in 2028 and $40 million Series BBB notes at 4.60% maturing in 2030.

When will KYN's new private placement of notes close?

The private placement is expected to close on or about October 15, 2025, subject to due diligence and standard closing conditions.

How will KYN use the proceeds from the $100 million notes offering?

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

What are the interest rates for KYN's new note series?

The Series AAA notes ($60 million) carry a 4.43% fixed rate, while the Series BBB notes ($40 million) have a 4.60% fixed rate.

Can these KYN notes be traded freely in the United States?

No, the notes will not be registered under the Securities Act of 1933 and cannot be offered or sold in the United States without registration or an applicable exemption.