Kayne Anderson Energy Development Company (the “Company”) (NYSE:KED) today announced its financial results for the quarter ended May 31, 2011.
- Quarterly distribution increased to $0.38 per share; increase of $0.07 per share (22.6%) from the prior quarter’s distribution
- Net asset value: $22.85 per share; up $0.97 per share from the prior quarter (4.4% increase) and up $0.10 per share from previously disclosed NAV (announced on June 30, 2011)
- Net investment income: $1.9 million
- Net realized gains: $51.6 million
- Net unrealized losses: $40.2 million
PORTFOLIO AND INVESTMENT ACTIVITY
As of May 31, 2011, the Company had long-term investments of $317.3 million, consisting of 50 portfolio companies of which approximately 59% were public MLPs, 23% were private MLPs and other equity and 18% were debt securities.On April 18, 2011, the Company sold its investment in International Resource Partners LP (“IRP”) to James River Coal Company for cash proceeds of $95.0 million. An additional $6.3 million was placed in escrow pursuant to the terms of the purchase agreement pending the satisfaction of certain post-closing obligations or the expiration of certain time periods. As of May 31, 2011, the Company recorded a receivable of $7.1 million on its balance sheet, which reflected the Company’s estimated fair value of the escrow plus certain post-closing adjustments. Subsequent to quarter end, the Company revised its previous estimate of the fair value for these items based on finalization of certain post-closing adjustments. As a result, the Company revised its previously announced NAV by $0.10 per share (see “Net Asset Value” below). As previously disclosed, the Company’s goal is to redeploy a significant amount of the after-tax proceeds from the IRP sale into similarly structured private investments over the next twelve months. Pending such investments, the Company invested substantially all of the gross proceeds from the IRP sale in public MLPs and traded debt securities during the second half of the quarter. Any future private investments will be funded through the sale of portfolio securities.
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