In August 2011, the Company expects to make tax payments of approximately $19 million. These tax payments are primarily associated with the sale of IRP and other non-recurring income. The Company intends to fund such tax payments primarily through the sale of portfolio securities.Operating results at Direct Fuels Partners, L.P. (“Direct Fuels”) improved substantially during the quarter. Also during the quarter, Direct Fuels sold its biodiesel business. Proceeds from the sale, including the reduction in working capital needs, along with a cash tax refund related to 2010 biodiesel production, were used to repay approximately $11 million of debt. As a result, the partnership was able to amend its credit agreement to allow the payment of cash distributions to its preferred and common unit holders for the first time since the fourth quarter of 2009. Additionally, because of Direct Fuels’ reduced debt levels and improving operating results, the Company expects Direct Fuels to continue paying $0.45 per common unit for the remainder of 2011. The Company’s guidance, however, assumes a distribution rate of $0.37 per common unit, which reflects lower margins that are more consistent with long-term historical averages.
Kayne Anderson Energy Development Company Announces Results For The Quarter Ended May 31, 2011
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