Kayne Anderson Energy Infrastructure Fund Prices Private Placement of $70 Million of Senior Notes

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) announced a conditional agreement for a private placement of $70 million in senior unsecured notes. The placement is expected to close around May 11, 2021, with net proceeds aimed at refinancing existing leverage and general corporate purposes. Key terms include two series of notes: Series PP, a floating rate note of $50 million maturing on June 19, 2026, and Series QQ, a fixed rate note of $20 million maturing on June 19, 2025. The notes will not be registered under the Securities Act of 1933.

Positive

• Secures $70 million in senior unsecured notes for refinancing existing leverage.
• Private placement expected to enhance financial stability.

Negative

• The issuance of notes may increase overall leverage risk.

HOUSTON, April 27, 2021 (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 $70 million of senior unsecured notes (“Notes”). The private placement is expected to close on or about May 11, 2021.

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 to be issued:

Series		Principal ($ in millions)		Interest Rate		Maturity Date
Series PP (floating rate)		$50		3-month LIBOR + 125 bps		6/19/2026
Series QQ (fixed rate)		$20		1.81%		6/19/2025

Closing of this transaction is subject to investor due diligence, legal documentation, and other standard closing conditions. The Notes issued in connection with this private placement will not 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 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 Energy Infrastructure Fund's private placement of $70 million?

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

When is the expected closing date for the KYN private placement?

The private placement is expected to close on or about May 11, 2021.

What are the interest rates and maturity dates for the notes issued by KYN?

Series PP has a floating rate of 3-month LIBOR + 125 bps maturing on June 19, 2026, while Series QQ has a fixed rate of 1.81% maturing on June 19, 2025.

Will the notes issued in the private placement be registered under the Securities Act?

No, the notes will not be registered under the Securities Act of 1933.

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

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