Kayne Anderson Energy Infrastructure Fund Announces Distribution of $0.175 per Share for Q2 2021

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) has announced a quarterly distribution of $0.175 per share for the fiscal quarter ending May 31, 2021, representing a 17% increase from the previous distribution. This new distribution, which reflects an 8.0% distribution rate based on KYN's closing stock price on June 23, 2021, is set for payment on July 13, 2021. The company asserts this increase is sustainable and results from robust performance in its midstream holdings, which are producing free cash flows exceeding dividend payments.

Positive

• Quarterly distribution increased by 17% to $0.175 per share.
• Distribution reflects an 8.0% rate based on stock price.
• Midstream holdings generating excess free cash flows.

Negative

• None.

HOUSTON, June 24, 2021 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) announced today a quarterly distribution of $0.175 per share for the fiscal quarter ended May 31, 2021. This distribution, which is an increase of $0.025 per share over the prior distribution, is payable to common stockholders on July 13, 2021 (as outlined in the table below).

The Company’s management and its Board of Directors recognize that distributions are a significant part of the value proposition KYN provides to its investors. Based on its closing stock price as of June 23, 2021, KYN’s distribution rate is 8.0%.

“One of management’s most important long-term goals is to provide KYN’s investors an attractive distribution, and I am very pleased to announce a 17% increase in the Company’s distribution. KYN’s portfolio investments have performed well over the last year, and we have increased confidence in the outlook for energy infrastructure companies over the next few years. In addition, KYN’s midstream holdings, which make up the substantial majority of the Company’s portfolio, are now generating free cash flows well in excess of their dividend payments,” said Jim Baker, the Company’s Chairman, President and CEO. “We expect our midstream holdings will use these excess free cash flows in ways that enhance shareholder value and, in turn, result in capital appreciation in KYN’s portfolio. We believe this increase in KYN’s distribution is an effective way to pass along these benefits to our investors. Based on our current outlook, we believe this distribution level is sustainable and is consistent with our distribution policy, which considers net distributable income (NDI) as well as realized and unrealized gains from KYN’s portfolio investments when determining KYN’s distribution,” concluded Mr. Baker.

Ex-Date	Record Date	Payment Date	Distribution Amount		Return of Capital Estimate(1)
7/2/21	7/6/21	7/13/21	$0.175		100%

^{(1)   The return of capital estimate is based on the Company’s anticipated earnings and profits. The final determination of the tax character of distributions may differ substantially from this preliminary information.}

The Company expects the next distribution to be declared in September 2021. Payment of future distributions is subject to the Board of Directors’ approval, as well as meeting the covenants of the Company’s debt agreements and terms of its preferred stock.

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. The amount of distributions is 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 take into account the specific objectives or circumstances of any investor. Please consult with your investment, tax, or legal adviser regarding your individual circumstances prior to investing.

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 from 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 new distribution amount for KYN for the quarter ended May 31, 2021?

The new distribution amount for KYN is $0.175 per share.

When will KYN shareholders receive their distribution?

KYN shareholders will receive their distribution on July 13, 2021.

How much has KYN's distribution increased?

KYN's distribution has increased by 17% compared to the previous distribution.

What is the current distribution rate for KYN?

The current distribution rate for KYN is 8.0% based on its closing stock price as of June 23, 2021.

When is the next expected distribution declaration for KYN?

The next expected distribution declaration for KYN is in September 2021.