Kayne Anderson Energy Infrastructure Fund secures a $175 million credit facility, replacing its previous $135 million facility.
Quiver AI Summary
Kayne Anderson Energy Infrastructure Fund, Inc. has announced the establishment of a $175 million unsecured revolving credit facility, set to mature on February 19, 2026. This facility replaces an existing $135 million credit line that was expiring soon. The interest rate for borrowings under the new facility will range from SOFR plus 1.40% to SOFR plus 2.25%, currently set at the lower rate due to the Company’s asset coverage ratios. As of February 20, 2025, the Company has utilized $101 million of this credit line. The fund focuses on obtaining high after-tax total returns by investing primarily in Energy Infrastructure Companies and pays cash distributions to its shareholders, which may fluctuate based on various factors. The press release includes a cautionary note about forward-looking statements and advises consulting with financial advisors before investing.
Potential Positives
- The Company has secured a $175 million unsecured revolving credit facility, enhancing its liquidity position.
- This new facility increases the total credit available, replacing the previous $135 million facility, allowing for greater financial flexibility.
- The interest rate on the new credit facility is competitive, starting at SOFR plus 1.40%, reflecting favorable asset coverage ratios.
- The Company continues to focus on providing a high after-tax total return with an emphasis on cash distributions to stockholders, aligning with its investment objectives.
Potential Negatives
- The Company has entered into a revolving credit facility with a higher total borrowing capacity ($175 million) compared to its previous facility ($135 million), which may indicate a need for additional liquidity possibly due to financial stress.
- The maturity date of the new credit facility is only one year longer than the previous one, suggesting potential ongoing refinancing risks and uncertainty in future funding.
- The variable interest rate tied to the SOFR indicates that the Company's borrowing costs could rise significantly if interest rates increase, potentially impacting profitability and cash distributions to stockholders.
FAQ
What is the new credit facility amount for Kayne Anderson Energy Infrastructure Fund?
The new credit facility amount is $175 million, replacing the previous $135 million facility.
When does the new credit facility mature?
The new credit facility matures on February 19, 2026.
What is the interest rate on the credit facility?
The interest rate varies from SOFR plus 1.40% to SOFR plus 2.25%, currently at SOFR plus 1.40%.
Where can I find the credit agreement?
The credit agreement is available on the Company's website at www.kaynefunds.com/kyn.
What is Kayne Anderson's primary investment objective?
Kayne Anderson's investment objective is to provide a high after-tax total return, emphasizing cash distributions to stockholders.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$KYN Insider Trading Activity
$KYN insiders have traded $KYN stock on the open market 5 times in the past 6 months. Of those trades, 5 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $KYN stock by insiders over the last 6 months:
- INVESTMENT MANAGEMENT, LLC METLIFE has made 4 purchases buying 15,280,000 shares for an estimated $9,600,000 and 0 sales.
- HARRISON JAMES LITTLE (Executive Vice President) purchased 5,000 shares for an estimated $65,193
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$KYN Hedge Fund Activity
We have seen 87 institutional investors add shares of $KYN stock to their portfolio, and 102 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- SABA CAPITAL MANAGEMENT, L.P. removed 850,986 shares (-86.0%) from their portfolio in Q4 2024, for an estimated $10,816,032
- WELLS FARGO & COMPANY/MN added 774,922 shares (+42.0%) to their portfolio in Q4 2024, for an estimated $9,849,258
- RAYMOND JAMES & ASSOCIATES removed 475,724 shares (-18.4%) from their portfolio in Q3 2024, for an estimated $5,232,964
- RIVERNORTH CAPITAL MANAGEMENT, LLC removed 438,272 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $5,570,437
- ROYAL BANK OF CANADA removed 349,664 shares (-14.9%) from their portfolio in Q4 2024, for an estimated $4,444,229
- SUMMIT FINANCIAL, LLC added 319,433 shares (+inf%) to their portfolio in Q4 2024, for an estimated $4,059,993
- BANK OF AMERICA CORP /DE/ added 314,226 shares (+7.5%) to their portfolio in Q4 2024, for an estimated $3,993,812
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
HOUSTON, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) has entered into a $175 million unsecured revolving credit facility (the “Credit Facility”). The Credit Facility matures on February 19, 2026 and replaces the Company’s $135 million credit facility that was scheduled to mature on February 20, 2025.
The interest rate on outstanding borrowings under the Credit Facility may vary between SOFR plus 1.40% and SOFR plus 2.25%, depending on the Company’s asset coverage ratios. Based on the Company’s current asset coverage ratios, the interest rate is SOFR plus 1.40%. The Company will pay a commitment fee of 0.20% per annum on any unused amounts of the Credit Facility. As of February 20, 2025, the Company had $101 million borrowed under the Credit Facility.
A copy of the credit agreement is available on the Company’s website at www.kaynefunds.com/kyn .
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 [email protected] .
