Kayne Anderson Energy Total Return Fund Enters Into $100 Million Revolving Credit Facility
Kayne Anderson Energy Total Return Fund, Inc. (the “Fund”) (NYSE:KYE) announced today that it has entered into a $100 million unsecured revolving credit facility (the “Credit Facility”) with a syndicate of lenders. The Credit Facility has a three-year commitment terminating on March 4, 2016.
Outstanding loan balances will accrue interest daily at a rate equal to the one-month LIBOR plus 1.60% based on current asset coverage ratios. The interest rate may vary between LIBOR plus 1.60% and LIBOR plus 2.25%, depending on asset coverage ratios. The Fund will pay a fee equal to a rate of 0.30% on any unused amounts of the Credit Facility. The Fund currently has $38 million borrowed under the Credit Facility. A copy of the new credit agreement is available on the Fund’s website at www.kaynefunds.com/kye/other-material-documents.
The Fund is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940 whose common stock is traded on the NYSE. The Fund’s investment objective is to obtain a high total return with an emphasis on current income by investing primarily in securities of companies engaged in the energy industry, principally including publicly-traded energy-related master limited partnerships and limited liability companies taxed as partnerships and their affiliates, energy-related U.S. and Canadian royalty trusts and income trusts and other companies that derive at least 50% of their revenues from operating assets used in, or providing energy-related services for, the exploration, development, production, gathering, transportation, processing, storing, refining, distribution, mining or marketing of natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal.
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 Fund’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 Fund’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 Fund undertakes no obligation to publicly
update or revise any forward-looking statements made herein. There is no
assurance that the Fund’s investment objectives will be attained.
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