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Kayne Anderson Energy Infrastructure Fund Prices Private Placement of $70 Million of Notes and $30 Million of Mandatory Redeemable Preferred Shares

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Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) has announced a private placement of $100 million in financial instruments. This consists of $70 million in senior unsecured notes and $30 million in mandatory redeemable preferred shares (MRP Shares). The deal, expected to close around September 18, 2024, will be used to refinance existing leverage and for general corporate purposes.

The notes are divided into two series: Series YY ($30 million at 5.19% interest, maturing September 2031) and Series ZZ ($40 million at 5.45% interest, maturing September 2036). The MRP Shares (Series X) amount to $30 million with a 5.49% dividend rate and mandatory redemption in September 2029.

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) ha annunciato un collocamento privato di 100 milioni di dollari in strumenti finanziari. Questo consiste in 70 milioni di dollari in note senior non garantite e 30 milioni di dollari in azioni privilegiate riscattabili obbligatorie (MRP Shares). L'operazione, prevista per chiudere intorno al 18 settembre 2024, sarà utilizzata per rifinanziare l'indebitamento esistente e per scopi aziendali generali.

Le note sono suddivise in due serie: Serie YY (30 milioni di dollari al 5,19% di interesse, in scadenza a settembre 2031) e Serie ZZ (40 milioni di dollari al 5,45% di interesse, in scadenza a settembre 2036). Le MRP Shares (Serie X) ammontano a 30 milioni di dollari con un tasso di dividendo del 5,49% e un riscatto obbligatorio a settembre 2029.

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) ha anunciado un colocación privada de 100 millones de dólares en instrumentos financieros. Esto consiste en 70 millones de dólares en notas senior no garantizadas y 30 millones de dólares en acciones preferentes redimibles obligatorias (Acciones MRP). El acuerdo, que se espera cerrar alrededor del 18 de septiembre de 2024, se utilizará para refinanciar el apalancamiento existente y para fines corporativos generales.

Las notas se dividen en dos series: Serie YY (30 millones de dólares al 5,19% de interés, con vencimiento en septiembre de 2031) y Serie ZZ (40 millones de dólares al 5,45% de interés, con vencimiento en septiembre de 2036). Las Acciones MRP (Serie X) ascienden a 30 millones de dólares con una tasa de dividendo del 5,49% y redención obligatoria en septiembre de 2029.

케이네 앤더슨 에너지 인프라 펀드, 인크. (NYSE: KYN)은 1억 달러의 사모 배정을 발표했습니다. 이는 7천만 달러의 비담보 고위험 노트3천만 달러의 의무상환 우선주(MRP 주식)로 구성됩니다. 이 거래는 2024년 9월 18일경에 마감될 것으로 예상되며, 기존의 레버리지를 재융자하고 일반 기업 목적을 위해 사용될 것입니다.

노트는 두 개의 시리즈로 나뉘어 있습니다: 시리즈 YY(3천만 달러, 5.19% 이자, 2031년 9월 만기)와 시리즈 ZZ(4천만 달러, 5.45% 이자, 2036년 9월 만기). MRP 주식(시리즈 X)은 3천만 달러로, 5.49%의 배당률과 2029년 9월의 의무 상환일이 있습니다.

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) a annoncé un placement privé de 100 millions de dollars dans des instruments financiers. Cela se compose de 70 millions de dollars en obligations senior non garanties et de 30 millions de dollars en actions privilégiées remboursables obligatoirement (Actions MRP). L'accord, qui devrait se clôturer aux alentours du 18 septembre 2024, sera utilisé pour refinancer l'endettement existant et pour des besoins d'entreprise généraux.

Les obligations sont divisées en deux séries : Série YY (30 millions de dollars à un taux d'intérêt de 5,19%, échéance en septembre 2031) et Série ZZ (40 millions de dollars à un taux d'intérêt de 5,45%, échéance en septembre 2036). Les Actions MRP (Série X) s'élèvent à 30 millions de dollars avec un taux de dividende de 5,49% et un remboursement obligatoire en septembre 2029.

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) hat eine private Platzierung von 100 Millionen Dollar in Finanzinstrumenten angekündigt. Diese besteht aus 70 Millionen Dollar in unbesicherten vorrangigen Anleihen und 30 Millionen Dollar in obligatorisch einlösbaren Vorzugsaktien (MRP Shares). Der Deal, der voraussichtlich um den 18. September 2024 abgeschlossen wird, soll zur Refinanzierung bestehender Verbindlichkeiten und für allgemeine Unternehmenszwecke verwendet werden.

Die Anleihen sind in zwei Serien unterteilt: Serie YY (30 Millionen Dollar mit 5,19% Zinsen, fällig im September 2031) und Serie ZZ (40 Millionen Dollar mit 5,45% Zinsen, fällig im September 2036). Die MRP-Aktien (Serie X) betragen 30 Millionen Dollar mit einer Dividendenrate von 5,49% und einer obligatorischen Einlösung im September 2029.

Positive
  • Secured $100 million in new financing
  • Diversified funding sources with notes and preferred shares
  • Extended debt maturity profile with notes due in 2031 and 2036
  • Potential for improved financial flexibility through refinancing
Negative
  • Increased leverage and interest expenses
  • Potential dilution for existing shareholders due to preferred shares issuance

Insights

Kayne Anderson Energy Infrastructure Fund's private placement of $100 million in notes and preferred shares is a strategic move to refinance existing leverage. The fixed interest rates ranging from 5.19% to 5.49% seem competitive in the current market environment. This refinancing could potentially lower the fund's overall cost of capital, which is positive for shareholders.

However, investors should note that this additional leverage increases the fund's financial risk. The mandatory redemption dates extending to 2036 provide long-term stability but also lock in these obligations for an extended period. The impact on the fund's net asset value (NAV) and distribution capacity will depend on how effectively management deploys this capital in the energy infrastructure sector.

This financing move by Kayne Anderson reflects a cautiously optimistic outlook on the energy infrastructure sector. By securing long-term funding, the fund is positioning itself to capitalize on potential opportunities in the evolving energy landscape. The focus on energy infrastructure companies aligns with the ongoing transition towards cleaner energy sources and the need for updated infrastructure.

Investors should monitor how this additional capital is deployed, particularly in areas like:

  • Renewable energy integration projects
  • Natural gas infrastructure upgrades
  • Carbon capture and storage initiatives
The success of these investments will be important in determining the long-term value creation for shareholders and the fund's ability to maintain its distribution policy.

HOUSTON, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) announced today that it reached an agreement with institutional investors relating to a private placement of $70 million of senior unsecured notes (“Notes”) and $30 million of mandatory redeemable preferred shares (“MRP Shares”). The private placement is expected to close on or about September 18, 2024.

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.

Notes / MRP
Shares
SeriesAmount
($ in millions)
Fixed Interest /
Dividend Rate
Maturity / Mandatory
Redemption Date
NotesSeries YY$305.19%September 2031
NotesSeries ZZ$405.45%September 2036
MRP SharesSeries X$305.49%September 2029
TOTAL
 $100  


Closing of this transaction is subject to investor due diligence, legal documentation, and other standard closing conditions. The Notes and MRP Shares 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.

The Company pays cash distributions to common stockholders at a rate that may be adjusted from time to time. Distribution amounts are 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 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@kayneanderson.com.


FAQ

What is the total value of Kayne Anderson Energy Infrastructure Fund's (KYN) new private placement?

Kayne Anderson Energy Infrastructure Fund (KYN) has announced a private placement totaling $100 million, consisting of $70 million in senior unsecured notes and $30 million in mandatory redeemable preferred shares.

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

The private placement is expected to close on or about September 18, 2024.

What are the interest rates for KYN's new senior unsecured notes?

The Series YY notes have a 5.19% interest rate, while the Series ZZ notes have a 5.45% interest rate.

What is the dividend rate for KYN's new mandatory redeemable preferred shares?

The Series X mandatory redeemable preferred shares have a 5.49% dividend rate.

How does KYN plan to use the proceeds from this private placement?

KYN plans to use the net proceeds to refinance existing leverage and for general corporate purposes.

Kayne Anderson Energy Infrastructure Fund, Inc.

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