(NYSE:KED) Kayne Anderson Energy Development Company (the “Company”) today announced its financial results for the quarter ended August 31, 2013 and provided an update on recent events for its Portfolio Investments.
FISCAL THIRD QUARTER HIGHLIGHTS
ProPetro Services, Inc.
- The Company increased its quarterly distribution to $0.455 per share, up 3.4% from the prior quarter
- Net asset value of $27.84 per share; up $1.40 per share (5.3%) from the prior quarter
- Net investment loss of $1.1 million
- Net realized gains of $4.6 million
- Net unrealized gains of $15.6 million
On September 30, 2013, ProPetro Services, Inc. (“ProPetro”) repaid in full the First Lien Term B Loan held by the Company ($9.7 million of principal and accrued interest). The Company no longer has an investment in ProPetro following this repayment.
Plains All American GP.
On October 21, 2013, Plains GP Holdings, L.P. (“Plains GP”) completed its initial public offering and trades on the New York Stock Exchange under the ticker “PAGP”. Plains GP was formed to own a portion of the general partner of Plains All American Pipeline, L.P. All of the Company’s holdings in Plains All American GP LLC are exchangeable into shares of Plains GP on a one-for-one basis at the Company’s option. As part of the IPO, the Company agreed to a 15-month lock-up on its Plains GP shares.
RESULTS OF OPERATIONS – QUARTER ENDED AUGUST 31, 2013
Investment income totaled $1.0 million for the quarter and consisted primarily of net dividends and distributions and interest income on the Company’s debt investments. The Company received $6.8 million of dividends and distributions during the quarter, of which $6.3 million was treated as a return of capital. Interest and other income was $0.5 million. Return of capital was increased by $0.3 million during the quarter due to 2012 tax reporting information that the Company received in the fiscal third quarter 2013. The Company received $0.3 million of paid-in-kind dividends during the quarter, which are not included in investment income, but are reflected as an unrealized gain.