Kayne Anderson Energy Infrastructure Fund Enters Into $175 Million Revolving Credit Facility

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) announced a new $175 million unsecured revolving credit facility, set to mature on February 23, 2024. This replaces its previous $200 million facility that was due on February 24, 2023. The interest rate is based on SOFR plus a spread of 1.40% to 2.25%, currently set at SOFR plus 1.40% due to the company’s asset coverage ratios. No borrowings were outstanding as of the announcement date. The fund aims to provide high after-tax total returns, primarily through investments in energy infrastructure companies, with at least 80% of its total assets allocated to this sector.

Positive

• Establishment of a new $175 million unsecured revolving credit facility.
• Interest rate currently at SOFR plus 1.40%, indicating favorable borrowing costs.
• Elimination of prior $200 million credit facility due to maturity.

Negative

• Credit facility amount reduced from $200 million to $175 million, indicating potential tightening of credit.

HOUSTON, Feb. 24, 2023 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) announced today that it that it has entered into a $175 million unsecured revolving credit facility (the “Credit Facility”) with a syndicate of lenders. The Credit Facility matures on February 23, 2024. The Credit Facility replaces the Company’s $200 million unsecured revolving credit facility that was scheduled to mature on February 24, 2023.

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 Company’s asset coverage ratios. Based on the Company’s current asset coverage ratios, the interest rate is SOFR plus 1.40%. The Company will pay a commitment fee of 0.20% per annum on any unused amounts of the Credit Facility. As of February 24, 2023, the Company did not have any borrowings outstanding under the Credit Facility.

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

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.

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@kaynecapital.com

FAQ

What is the significance of Kayne Anderson's new credit facility?

The new $175 million credit facility provides liquidity and replaces a maturing facility, aiding the company's financial flexibility.

What are the terms of the new credit facility for KYN?

The new credit facility has an interest rate of SOFR plus 1.40% to 2.25%, maturing on February 23, 2024.

How does KYN's new credit facility impact shareholders?

The facility allows KYN to maintain liquidity, although the reduction in facility size may indicate a tighter credit environment.

What was the previous credit facility amount for KYN?

The previous credit facility was $200 million, which has been replaced by the new $175 million facility.