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Kayne Anderson Energy Development Company Announces Results For The Quarter Ended August 31, 2011

Interest Expense – Interest expense is estimated to be approximately $0.39 million per quarter based on $70 million borrowed under the Company’s credit facility, assuming a 30-day LIBOR rate of 0.22% and a spread of 2.00%.

Based on the foregoing assumptions, the Company is expected to generate NDI per share of $0.415 $0.425 in the fourth quarter.

DISTRIBUTION AND DISTRIBUTION GUIDANCE

On October 5, 2011, the Company declared a distribution of $0.38 per share for the quarter ended August 31, 2011 that is payable on October 28, 2011 to stockholders of record on October 19, 2011. “While the Company generated NDI well in excess of the $0.38 dividend, we feel it is prudent to maintain the dividend at $0.38 for the time being,” said Kevin McCarthy, the Company’s President and CEO. “We believe the $0.38 dividend is sustainable under a variety of different events that could occur at our three largest private investments. As we get more clarity on these investments over the next few quarters, we will reassess our dividend guidance at that time.”

CONFERENCE CALL

The Company will host a conference call at 4 p.m. Central time, on Tuesday, October 18, 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 #15207107." 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.php).

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 AUGUST 31, 2011 (amounts in 000’s, except share and per share amounts) (UNAUDITED)

 
ASSETS  
Investments, at fair value:
Non-affiliated (Cost — $198,429) $ 209,894
Affiliated (Cost — $112,382) 88,521
Short-term investments (Cost — $3,332)   3,332  
Total investments (Cost — $314,143) 301,747
Receivable for securities sold 1,247
Interest, dividends and distributions receivable 1,110
Other receivables 5,040
Debt issuance costs, prepaid expenses and other assets   788  
Total Assets   309,932  
LIABILITIES
Senior secured revolving credit facility 70,000
Current income tax liability 7,107
Deferred income tax liability 3,388
Payable for securities purchased 52
Investment management fee payable 1,402
Accrued directors’ fees and expenses 79
Accrued expenses and other liabilities   628  
Total Liabilities   82,656  
NET ASSETS $ 227,276  
NET ASSETS CONSIST OF
Common stock, $0.001 par value (200,000,000 shares authorized; 10,326,069 shares issued and outstanding) $ 10
Paid-in capital 199,115
Accumulated net investment loss, net of income taxes, less dividends (18,056 )
Accumulated net realized gains on investments, net of income taxes 54,964
Net unrealized losses on investments, net of income taxes   (8,757 )
NET ASSETS $ 227,276  
NET ASSET VALUE PER SHARE $ 22.01  
 

KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED AUGUST 31, 2011 (amounts in 000’s) (UNAUDITED)

 
INVESTMENT INCOME  
Income
Dividends and Distributions:
Non-affiliated investments $ 2,764
Affiliated investments   1,720  
Total dividends and distributions 4,484
Return of capital   (2,899 )
Net dividends and distributions 1,585
Interest and other income — non-affiliated investments 871
Interest — affiliated investments   429  
Total investment income   2,885  
Expenses
Investment management fees 1,402
Professional fees 152
Directors’ fees and expenses 76
Administration fees 43
Insurance 35
Custodian fees 15
Other expenses   170  
Total expenses — before interest expense 1,893
Interest expense   474  
Total expenses   2,367  
Net Investment Income — Before Income Taxes 518
Current income tax expense (140 )
Deferred income tax expense   (43 )
Net Investment Income 335
REALIZED AND UNREALIZED GAINS (LOSSES)
Net Realized Gains (Losses)
Investments — non-affiliated 3,496
Investments — affiliated (11 )
Current income tax expense (1,083 )
Deferred income tax expense   (109 )
Net Realized Gains   2,293  
Net Change in Unrealized Losses
Investments — non-affiliated (9,029 )
Investments — affiliated (2,324 )
Deferred income tax benefit   4,018  
Net Change in Unrealized Losses   (7,335 )
Net Realized and Unrealized Losses   (5,042 )
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (4,707 )
 

The Company is a non-diversified, closed-end investment company that elected to be treated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to generate both current income and capital appreciation primarily through equity and debt investments. The Company will seek to achieve this objective by investing at least 80% of its net assets together with the proceeds of any borrowings (its "total assets") in securities of companies that derive the majority of their revenue from activities in the energy industry, including: (a) Midstream Energy Companies, which are businesses that operate assets used to gather, transport, process, treat, terminal and store natural gas, natural gas liquids, propane, crude oil or refined petroleum products; (b) Upstream Energy Companies, which are businesses engaged in the exploration, extraction and production of natural resources, including natural gas, natural gas liquids and crude oil, from onshore and offshore geological reservoirs; and (c) Other Energy Companies, which are businesses engaged in owning, leasing, managing, producing, processing and sale of coal and coal reserves; the marine transportation of crude oil, refined petroleum products, liquefied natural gas, as well as other energy-related natural resources using tank vessels and bulk carriers; and refining, marketing and distributing refined energy products, such as motor gasoline and propane to retail customers and industrial end-users.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from the Company's historical experience and its present expectations or projections indicated in any forward-looking statement. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; energy industry risk; commodity pricing risk; leverage risk; valuation risk; non-diversification risk; interest rate risk; tax risk; and other risks discussed in the Company's filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company 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.

Stock quotes in this article: KED 
Copyright Business Wire 2010

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