Kayne Anderson NextGen Energy & Infrastructure Enters Into $50 Million Revolving Credit Facility

Rhea-AI Summary

Kayne Anderson NextGen Energy & Infrastructure (NYSE: KMF) has secured a new $50 million unsecured revolving credit facility, replacing its previous facility set to expire on February 25, 2022. This new credit line will mature on February 24, 2023, with an interest rate ranging from SOFR plus 1.40% to SOFR plus 2.25%, depending on asset coverage ratios. Currently, the interest rate stands at SOFR plus 1.40%. As of February 25, 2022, KMF had $35 million in borrowings outstanding under this facility.

HOUSTON, Feb. 25, 2022 (GLOBE NEWSWIRE) -- Kayne Anderson NextGen Energy & Infrastructure, Inc. (the “Fund”) (NYSE: KMF) announced today that it has entered into a $50 million unsecured revolving credit facility (the “Credit Facility”) with a syndicate of lenders. The Credit Facility matures on February 24, 2023. The Credit Facility replaces the Fund’s $50 million unsecured revolving credit facility that was scheduled to mature on February 25, 2022.

The interest rate on outstanding borrowings under the Credit Facility may vary between SOFR plus 1.40% and SOFR plus 2.25%, depending on the Fund’s asset coverage ratios. Based on the Fund’s current asset coverage ratios, the interest rate is SOFR plus 1.40%. The Fund will pay a commitment fee of 0.20% per annum on any unused amounts of the Credit Facility. As of February 25, 2022, the Fund had $35 million of borrowings outstanding under the Credit Facility.

A copy of the credit agreement is available on the Fund’s website at www.kaynefunds.com/kmf.

Kayne Anderson NextGen Energy & Infrastructure, Inc. (NYSE: KMF) 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 fund's investment objective is to provide a high level of total return with an emphasis on making cash distributions to its stockholders. KMF seeks to achieve its investment objective by investing at least 80% of its total assets in securities of Energy Companies and Infrastructure Companies. The fund anticipates that the majority of its investments will consist of investments in "NextGen" companies, which we define as Energy Companies and Infrastructure Companies that are meaningfully participating in or benefitting from the Energy Transition. See Glossary of Key Terms in the fund's most recent quarterly report for a description of these investment categories and the meaning of capitalized terms.

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@kaynecapital.com

FAQ

What is the recent credit facility announcement for KMF?

Kayne Anderson NextGen Energy & Infrastructure announced a $50 million unsecured revolving credit facility that replaces the previous facility maturing on February 25, 2022.

What are the terms of KMF's new credit facility?

The new credit facility matures on February 24, 2023, with an interest rate of SOFR plus 1.40% to SOFR plus 2.25%, currently at SOFR plus 1.40%.

How much was borrowed under KMF's existing credit facility?

As of February 25, 2022, KMF had $35 million in borrowings outstanding under its credit facility.

What is the purpose of KMF's credit facility?

The credit facility provides financial flexibility to Kayne Anderson NextGen Energy & Infrastructure for its operational needs.