Kayne Anderson Energy Infrastructure Fund Secures $100M in Notes
Kayne Anderson Energy Infrastructure Fund Announces Major Financing
Kayne Anderson Energy Infrastructure Fund, Inc. (the "Company") (NYSE: KYN) has made headlines recently with a significant development in its financing strategy. The fund has successfully arranged a private placement of $100 million in senior unsecured notes with various institutional investors. This decision reflects the company's proactive approach to optimizing its capital structure and enhancing its financial flexibility.
Purpose of the Private Placement
The primary aim of this private placement is to bolster the Company’s existing capital. The net proceeds from the issuance of the notes will be allocated to refinance current leverage and support general corporate initiatives. This move is expected to strengthen the long-term operational strategy of the Company, allowing it to better navigate the dynamic energy infrastructure market.
Details of the Notes
Key Terms and Conditions
The notes will come in two different series, each with specific amounts, interest rates, and maturities. The first series is rated AAA with a total amount of $60 million and carries a fixed interest rate of 4.43%, maturing in October 2028. The second series is rated BBB, amounting to $40 million with a rate of 4.60%, maturing two years later in October 2030. This strategic structure of the notes is anticipated to provide a reliable revenue stream for the Company.
Closing Conditions and Regulatory Compliance
It is important to note that the closing of this private placement will be subject to thorough due diligence, preparation of legal documentation, and adherence to standard closing conditions. Furthermore, the notes will not be registered under the Securities Act of 1933, making them unavailable for sale in various jurisdictions unless properly registered or exempt from registration.
About Kayne Anderson Energy Infrastructure Fund
Kayne Anderson Energy Infrastructure Fund, Inc. is a well-established closed-end management investment company. Registered under the Investment Company Act of 1940, the fund aims to provide investors with high after-tax total returns, particularly through cash distributions. To achieve this objective, KYN has committed to investing at least 80% of its assets in securities related to energy infrastructure companies. This investment strategy is designed to capture the potential growth in the energy sector while managing risk effectively.
Distribution Policy and Variability
The Company’s approach to cash distributions is notable, as it adapts based on various influencing factors such as portfolio performance and market conditions. Shareholders are advised that while distributions can be expected, they are not guaranteed and may fluctuate over time. This flexible distribution policy demonstrates KYN's commitment to delivering value to its stockholders while navigating the market.
Contact Information
For inquiries regarding investor relations or more information about the Company’s strategies and objectives, stakeholders are encouraged to reach out directly via phone or email. Interested parties can contact investor relations at 877-657-3863 or at cef@kayneanderson.com.
Frequently Asked Questions
What is the recent announcement by Kayne Anderson Energy Infrastructure Fund?
The fund announced a private placement of $100 million in senior unsecured notes aimed at refinancing existing leverage and supporting corporate initiatives.
What will the proceeds from the private placement be used for?
The proceeds will primarily be utilized to refinance existing capital and for general corporate purposes, enhancing the company’s financial flexibility.
What are the key details of the notes issued?
The notes come in two series: one rated AAA with a $60 million amount and a fixed rate of 4.43%, and a BBB-rated series of $40 million at a 4.60% rate, with staggered maturities.
Are the notes registered with the SEC?
No, the notes will not be registered under the Securities Act of 1933 and cannot be sold in the U.S. without appropriate registration or exemptions.
How can one contact Kayne Anderson Energy Infrastructure Fund for further inquiries?
Interested individuals can contact investor relations at 877-657-3863 or via email at cef@kayneanderson.com for more information.
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