Kayne Anderson Energy Infrastructure Fund Enters Into $50 Million Unsecured Term Loan

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) announced a $50 million unsecured term loan agreement with Sumitomo Mitsui Banking Corporation. This loan has a three-year term, maturing on August 6, 2024. Proceeds will primarily be used to repay existing debt and for general corporate purposes. The loan features a fixed interest rate of 1.735% on $25 million, while the other $25 million will accrue interest at LIBOR plus 1.30%. This move aims to enhance the company's financial flexibility and improve its balance sheet.

Positive

• Secured a $50 million unsecured term loan to improve financial flexibility.
• Reduced interest expense with a fixed rate of 1.735% on half of the loan.

Negative

• Total loan amount may increase leverage risk.
• Reliance on external financing may impact future financial stability.

HOUSTON, Aug. 06, 2021 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) announced today that it entered into a $50 million unsecured term loan agreement (“Term Loan”) with Sumitomo Mitsui Banking Corporation (SMBC). The Term Loan has a three-year term, maturing August 6, 2024. Proceeds from the Term Loan will be used to repay outstanding indebtedness and for general corporate purposes.

The Company will pay a fixed interest rate of 1.735% on $25 million of the Term Loan. The remaining $25 million of the Term Loan will accrue interest daily at a rate of LIBOR plus 1.30%. Amounts repaid under the Term Loan cannot be reborrowed.

A copy of the Term Loan agreement is available on the Company’s website at kaynefunds.com/kyn/#resources.

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 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 purpose of Kayne Anderson's $50 million term loan?

The loan will be used to repay existing debt and for general corporate purposes.

When does Kayne Anderson's term loan mature?

The term loan matures on August 6, 2024.

What are the interest rates associated with the term loan?

The loan carries a fixed interest rate of 1.735% on $25 million, with the remaining $25 million accruing interest at LIBOR plus 1.30%.

How does the loan impact Kayne Anderson's financial situation?

The loan is expected to enhance financial flexibility but may increase leverage risk.