Kayne Anderson Energy Infrastructure Fund Prices Private Placement of $90 Million of Notes and $20 Million of Mandatory Redeemable Preferred Shares

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) has announced a conditional agreement to raise $90 million through senior unsecured notes and $20 million via Mandatory Redeemable Preferred Shares. The transaction is expected to close on or around May 18, 2022, with two fundings scheduled. Proceeds will refinance existing leverage and support general corporate purposes. The Series RR Notes will bear an interest rate of 4.57% and mature on May 18, 2032, while the Series SS Notes will have a 4.67% rate maturing on August 2, 2034. The MRP Shares will yield 5.07% and mature on August 2, 2032.

Positive

• Successful placement of $90 million in senior unsecured notes aims to refinance existing debt, improving financial stability.
• $20 million in Mandatory Redeemable Preferred Shares enhances capital options.

Negative

• Issuance of new securities may dilute existing shareholder equity.
• The transaction remains subject to investor due diligence and other conditions, potentially delaying funds.

HOUSTON, May 03, 2022 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) announced that it reached a conditional agreement with institutional investors relating to a private placement of $90 million of senior unsecured notes (“Notes”) and $20 million of Mandatory Redeemable Preferred Shares (“MRP Shares”). The private placement is expected to close on or about May 18, 2022, and there will be two fundings in connection with the transaction: (a) $45 million of Series RR Notes will be issued on May 18, 2022, and (b) $45 million of Series SS Notes and $20 million of Series T MRP Shares will be issued on August 2, 2022.

Net proceeds will be used to refinance existing leverage and for general corporate purposes. The table below sets forth the key terms of the Notes and MRP Shares to be issued:

Security		Amount ($ in millions)			Rate		Maturity
Series RR Notes		$45			4.57%		5/18/2032
Series SS Notes		$45			4.67%		8/2/2034
Total Notes		$90
Series T MRP Shares		$20			5.07%		8/2/2032

Closing of this transaction is subject to investor due diligence, legal documentation, and other standard closing conditions. Neither the Notes nor the MRP Shares issued in connection with this private placement will be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

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 recent financial move by KYN?

KYN has announced a conditional agreement for a $90 million private placement of senior unsecured notes and $20 million of Mandatory Redeemable Preferred Shares.

When is the closing date for KYN's private placement?

The private placement is expected to close on or about May 18, 2022.

What are the interest rates for KYN's new bonds?

The Series RR Notes will have an interest rate of 4.57% and Series SS Notes will offer 4.67%.

How will the proceeds from KYN's placement be used?

The net proceeds will be used to refinance existing leverage and for general corporate purposes.

What is the stock symbol for Kayne Anderson Energy Infrastructure Fund?

The stock symbol for Kayne Anderson Energy Infrastructure Fund is KYN.