Welcome to our dedicated page for Kayne Anderson Energy Infrastructure news (Ticker: KYN), a resource for investors and traders seeking the latest updates and insights on Kayne Anderson Energy Infrastructure stock.
Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company committed to delivering a high after-tax total return, with a particular focus on cash distributions to its stockholders. Registered under the Investment Company Act of 1940, KYN strategically invests at least 80% of its total assets in securities of Energy Infrastructure companies. The fund primarily targets entities involved in the midstream energy sector, which includes pipelines, storage, and other energy infrastructure assets.
Recently, KYN has been navigating significant corporate activities, including a merger with Kayne Anderson NextGen Energy & Infrastructure, Inc. (NYSE: KMF). This merger, approved by stockholders and set to be finalized on November 13, 2023, aims to enhance the combined entity's ability to capitalize on long-term growth opportunities in the energy infrastructure sector. KMF stockholders had the option to receive either newly issued common stock of KYN or cash, subject to proration procedures to ensure a balanced allocation.
KYN is managed by KA Fund Advisors, LLC, a subsidiary of Kayne Anderson Capital Advisors, L.P., which brings extensive expertise in the energy sector. The fund is designed to offer investors exposure to the robust and stable cash flows generated by energy infrastructure assets, which are often less sensitive to commodity price fluctuations compared to other energy investments.
Financially, KYN emerged post-merger with total assets approximating $2.3 billion and a net asset value (NAV) of about $1.7 billion. The effective NAV per share was $9.95 with approximately 169.1 million shares outstanding. This strong financial footing is a testament to KYN's strategic investment approach and commitment to shareholder value.
KYN’s investment strategy and recent achievements highlight its continued dedication to providing robust returns and consistent cash distributions. Investors seeking a reliable income stream backed by essential energy infrastructure assets find KYN a compelling option in their portfolios.
On April 24, 2023, KA Fund Advisors announced a modification to the merger terms between Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) and Kayne Anderson NextGen Energy & Infrastructure (NYSE: KMF). The merger aims to streamline the combination into a single transaction, providing KMF investors the option to exchange their shares for either newly issued KYN stock or cash. The exchange ratio will depend on the relative net asset values (NAV) of both funds prior to closing. As of March 24, 2023, KYN's NAV was $9.51 and KMF's was $8.41. The merger is expected to be tax-free. Kayne Anderson has also agreed to management fee waivers, reducing thresholds for fee waivers significantly, impacting approximately $0.7 million annually for three years. Stockholder meetings for approval are slated for June 20, 2023.
Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) announced its unaudited statement of assets and liabilities as of March 31, 2023. The Company reported net assets of $1.4 billion and a net asset value per share of $10.01. The asset coverage ratio for senior securities was 547%, while the ratio for total leverage was 409%. As of the reporting date, the Company had 136,131,530 common shares outstanding, with a diversified investment portfolio primarily focused on midstream energy companies (84%).
On March 27, 2023, Kayne Anderson announced a definitive merger agreement between Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) and Kayne Anderson NextGen Energy & Infrastructure Fund (NYSE: KMF). The merger, unanimously approved by both funds' Boards, will see KMF stockholders receive KYN common stock in an NAV-for-NAV exchange. Key highlights include a tender offer for 15% of KMF shares and management fee waivers for KYN. The merger is expected to be tax-free for stockholders and will align both funds with favorable trends in the energy sector. KYN plans to increase its quarterly distribution twice, resulting in a 10% total increase post-merger.
Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) announced a quarterly distribution of $0.21 per share for the fiscal quarter ending February 28, 2023, marking a 5% increase from the previous distribution of $0.20. This distribution is payable to common stockholders on April 17, 2023, with an ex-dividend date of April 6, 2023. The estimated return of capital is projected at 20%. The company, focused on providing high after-tax total returns, invests at least 80% of its assets in Energy Infrastructure Companies. However, distribution amounts may vary based on market conditions and changes in portfolio holdings.
On March 2, 2023, Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) unveiled its financial status as of February 28, 2023. The fund reported net assets of $1.4 billion and a net asset value per share of $10.06. Its asset coverage ratios were notably strong, with a 577% coverage ratio for senior securities and a 424% ratio for total leverage. As of the reporting date, the company had 136,131,530 common shares outstanding. The vast majority (84%) of its long-term investments were in midstream energy companies. This summary reflects the fund's ongoing commitment to providing substantial returns to its shareholders.
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.
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