The Company‘s guidance reflects its intention to reinvest approximately 90% of the estimated $91 million available for investment in public MLPs at an average yield of 5.5% – 6.0%. The remainder of the after-tax proceeds will be invested in quoted debt securities at an average yield of 6.75% – 7.25%.
Based on these assumptions, the Company estimates dividends, distributions, and interest income will be approximately $5.6 – $5.7 million per quarter. While a significant portion of the distributions received from Direct Fuels and VantaCore during the first quarter were in the form of additional partnership units, the Company believes that the cash component of these distributions will increase over the next twelve months. Of note, this estimate assumes a fully invested portfolio. During the Company’s fiscal second quarter, it will not receive a distribution from IRP and investment income will be lower than the run rate estimate until the IRP sale proceeds are fully invested.
Management Fees and Other Operating Expenses – Management fees are estimated to be approximately $1.32 million per quarter. Other operating expenses are estimated to be approximately $0.43 million per quarter.
Interest Expense – Interest expense is estimated to be approximately $0.40 million per quarter based on $70 million borrowed under the Company’s credit facility, assuming a LIBOR rate of 0.26% and a spread of 2.00%. Borrowings reflect the increase in borrowing base from the redeployment of proceeds from the IRP transaction.Based on the foregoing assumptions, the Company is expected to generate net distributable income per share of $0.33 to $0.34 per quarter. CONFERENCE CALL The Company will host a conference call at 4 p.m. Central time, on Thursday, April 14, 2011 to discuss its results. All interested parties are welcome to participate. You can access the conference call by dialing (877) 563-8315 approximately 5-10 minutes prior to the call. International callers should dial (706) 679-4383. All callers should reference "Conference ID # 55551828." For the convenience of the Company’s stockholders, an archived replay of the call will be available on the Company’s website ( http://www.kaynefunds.com/webcasts.htm). AVAILABLE INFORMATION The Company’s filings with the Securities and Exchange Commission, press releases and other financial information are available on the Company’s website at www.kaynefunds.com.
|KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 2011 (amounts in 000’s, except share and per share amounts) (UNAUDITED)|
|Investments, at fair value:|
|Non-affiliated (Cost — $100,360)||$||130,394|
|Affiliated (Cost — $136,371)||168,305|
|Short-term investments (Cost — $3,963)||3,963|
|Total investments (Cost — $240,694)||302,662|
|Receivable for securities sold||504|
|Interest, dividends and distributions receivable, net||1,096|
|Debt issuance costs, prepaid expenses and other assets||1,000|
|Senior secured revolving credit facility||56,000|
|Deferred income tax liability||20,340|
|Payable for securities purchased||2,000|
|Investment management fee payable||1,251|
|Accrued directors’ fees and expenses||74|
|Accrued expenses and other liabilities||596|
|NET ASSETS CONSIST OF|
|Common stock, $0.001 par value (200,000,000 shares authorized; 10,284,477 shares issued and outstanding)||$||10|
|Accumulated net investment loss, net of income taxes, less dividends||(10,080||)|
|Accumulated net realized gains (losses) on investments, net of income taxes||1,060|
|Net unrealized gains (losses) on investments, net of income taxes||38,765|
|NET ASSET VALUE PER SHARE||$||21.88|
|KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED FEBRUARY 28, 2011 (amounts in 000’s) (UNAUDITED)|
|Dividends and Distributions:|
|Total dividends and distributions||2,521|
|Return of capital||(1,892||)|
|Net dividends and distributions||629|
|Interest and other income :||1,045|
|Total investment income||1,674|
|Investment management fees||1,251|
|Directors’ fees and expenses||75|
|Total expenses — before interest expense||1,639|
|Net Investment Income (Loss) — Before Income Taxes||(402||)|
|Deferred income tax benefit (expense)||148|
|Net Investment Income (Loss)||(254||)|
|REALIZED AND UNREALIZED GAINS (LOSSES)|
|Net Realized Gains (Losses)|
|Investments – non-affiliated||(5,122||)|
|Deferred income tax benefit (expense)||1,885|
|Net Realized Gains (Losses)||(3,237||)|
|Net Change in Unrealized Gains (Losses)|
|Investments – non-affiliated||49,453|
|Investments – affiliated||(17,454||)|
|Deferred income tax expense||(11,776||)|
|Net Change in Unrealized Gains||20,223|
|Net Realized and Unrealized Gains||16,986|
|NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS||$||16,732|
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