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Kayne Anderson Energy Development Company Announces Results For The Quarter And Fiscal Year Ended November 30, 2011

Stocks in this article: KED

Interest Expense – Interest expense is estimated to be approximately $0.47 million per quarter based on $82 million borrowed under the Company’s credit facility, assuming a 30-day LIBOR rate of 0.27% and a spread of 2.00%.

Based on the foregoing assumptions, the Company is expected to generate net distributable income (“NDI”) per share of $0.435 to $0.445 in the first quarter of fiscal 2012.


On January 18, 2012, the Company increased its distribution to $0.39 per share for the quarter ended November 30, 2011 that is payable on February 3, 2012 to stockholders of record on January 30, 2012.

“Our results for fiscal 2011 were very strong. During the year we generated NDI of $1.64 per share, well above the $1.46 per share we paid with respect to fiscal 2011,” said Kevin McCarthy, the Company’s President and CEO. “We believe our current distribution level, $0.39 per share, is sustainable under a variety of different scenarios that could occur at our largest three private investments. As we get more clarity on these investments over the next few quarters, we will reassess our distribution guidance at that time.”


The Company will host a conference call at 4 p.m. Central time, on Thursday, February 2, 2012 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 #46649741". For the convenience of the Company’s stockholders, an archived replay of the call will be available on the Company’s website (


The Company’s filings with the Securities and Exchange Commission, press releases and other financial information are available on the Company’s website at




(amounts in 000’s, except share and per share amounts)

Investments, at fair value:
Non-affiliated (Cost — $197,053) $ 217,618
Affiliated (Cost — $112,292)   102,224
Total investments (Cost — $309,345) 319,842
Cash 1,517
Income tax receivable 332
Receivable for securities sold 1,199
Interest, dividends and distributions receivable 1,014
Other receivable 5,030
Debt issuance costs, prepaid expenses and other assets   1,301
Total Assets   330,235
Senior secured revolving credit facility 77,000
Deferred income tax liability 12,642
Payable for securities purchased 418
Investment management fee payable 1,386
Accrued directors’ fees and expenses 73
Accrued expenses and other liabilities   686
Total Liabilities   92,205
NET ASSETS $ 238,030
Common stock, $0.001 par value (200,000,000 shares authorized; 10,342,730 shares issued and outstanding) $ 10
Paid-in capital 199,445
Accumulated net investment loss, net of income taxes, less dividends (21,369)
Accumulated net realized gains on investments, net of income taxes 53,686
Net unrealized losses on investments, net of income taxes   6,258
NET ASSETS $ 238,030



(amounts in 000’s)

Dividends and Distributions:
Non-affiliated investments $ 9,129
Affiliated investments   6,802
Total dividends and distributions 15,931
Return of capital   (8,252)
Net dividends and distributions 7,679
Interest and other income — non-affiliated investments 3,971
Interest — affiliated investments   1,423
Total investment income   13,073
Investment management fees 5,427
Professional fees 509
Directors’ fees and expenses 288
Administration fees 173
Insurance 133
Custodian fees 53
Other expenses   552
Total expenses — before interest expense 7,135
Interest expense   1,874
Total expenses   9,009
Net Investment Income — Before Income Taxes 4,064
Current income tax expense (1,044)
Deferred income tax expense   (456)
Net Investment Income   2,564
Net Realized Gains
Investments — non-affiliated 4,388
Investments — affiliated 73,898
Current income tax expense (20,120)
Deferred income tax expense   (8,777)
Net Realized Gains   49,389
Net Change in Unrealized Gains (Losses)
Investments — non-affiliated 39,985
Investments — affiliated (59,456)
Deferred income tax benefit   7,187
Net Change in Unrealized Losses   (12,284)
Net Realized and Unrealized Gains   37,105

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.

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