Kayne Anderson Energy Infrastructure Fund Secures $100 Million in Notes

Kayne Anderson Energy Infrastructure Fund Completes Successful Placement
HOUSTON — Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) has recently completed a significant transaction. This involved the placement of $100 million in senior unsecured notes, a strategic move aimed at refinancing existing leverage and addressing general corporate purposes.
Utilization of Net Proceeds
The funds raised through the issuance of these notes are intended for crucial financial strategies. By refinancing existing leverage, the Company aims to optimize its capital structure, contributing positively to its long-term financial health. These proceeds also support broader corporate initiatives, enhancing the company’s ability to respond to market dynamics.
Key Terms of the Notes Issued
As part of this private placement, two series of notes were issued, each with distinct features:
Details of Note Series
The first series, designated as AAA, involves an amount of $60 million with a fixed rate of 4.43%, set to mature in October 2028. The second series, classified as BBB, consists of $40 million at 4.60%, maturing in October 2030. These structured offerings provide the necessary capital while managing the risk and aiding in growth objectives.
Investment Objectives of the Company
Kayne Anderson Energy Infrastructure Fund operates as a non-diversified, closed-end management investment company. It is crucial for potential investors to understand the investment strategy that guides the Company. The primary objective is to achieve a high after-tax total return, focusing on making cash distributions to stockholders. A core element of this strategy is investing at least 80% of its total assets in securities related to Energy Infrastructure Companies.
Understanding the Energy Infrastructure Sector
Investing in energy infrastructure means focusing on companies essential to the energy sector's overall functionality. This includes those involved in the transportation, storage, and processing of energy resources. The strategy ensures that investments are well-positioned to capitalize on the systematic advancements and demands across the energy landscape.
Distribution Strategies and Variability
The Company maintains a policy of providing cash distributions to common stockholders. However, it’s essential to note that these distribution amounts are subject to adjustments that respond to several factors, including fluctuations in portfolio holdings and overall market conditions. Stakeholders are reminded that distribution rates are not guaranteed and may change over time.
Looking Ahead
While the successful placement of the senior unsecured notes is a positive step forward, it also highlights Kayne Anderson's adaptability in a constantly evolving market. The strategic refinancing of existing leverage gives the Company a solid footing to navigate potential challenges ahead. Investors and stakeholders can continue to watch how these developments impact the Company’s future trajectory.
Frequently Asked Questions
What are the terms of the notes issued by Kayne Anderson?
The notes consist of two series: an AAA series for $60 million at a fixed rate of 4.43% maturing in October 2028, and a BBB series for $40 million at 4.60% maturing in October 2030.
How does the refinancing benefit Kayne Anderson?
Refinancing existing leverage allows the Company to enhance its financial health, preparing it to better navigate market conditions while supporting corporate strategies.
What is the investment objective of Kayne Anderson Energy Infrastructure Fund?
The Company aims to provide a high after-tax total return, focusing on cash distributions while investing primarily in securities of Energy Infrastructure Companies.
Are cash distributions guaranteed?
No, distribution amounts are subject to variability and depend on portfolio changes and market conditions.
How can I contact Kayne Anderson Energy Infrastructure Fund?
You can reach their investor relations at 877-657-3863 or via email at cef@kayneanderson.com.
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