Operating expenses totaled $2.8 million, including $1.8 million of investment management fees, $0.6 million of interest expense and $0.4 million of other operating expenses. Interest expense included $0.1 million of amortization of debt offering costs.
The Company’s net investment loss totaled $1.1 million and included a current income tax benefit of $0.2 million and a deferred income tax benefit of $0.5 million.
The Company had net realized gains from investments of $4.7 million, after taking into account a deferred income tax expense of $2.5 million and a current income tax expense of $0.3 million.
The Company had a net increase in unrealized gains of $15.6 million. The net increase consisted of $24.8 million of unrealized gains from investments and a deferred income tax expense of $9.2 million.The Company had an increase in net assets resulting from operations of $19.2 million. This increase was comprised of net investment loss of $1.1 million, net realized gains of $4.7 million, and net unrealized gains of $15.6 million, as noted above. NET ASSET VALUE As of August 31, 2013, the Company’s net asset value was $290.8 million or $27.84 per share. PORTFOLIO As of August 31, 2013, the Company had long-term investments of $433.2 million, of which approximately 86% were public MLPs and other public equity securities, 10% were private MLPs and other private equity securities and 4% were debt securities. The Company’s long-term investments consisted of 52 portfolio companies. UPDATES ON PRIVATE PORTFOLIO COMPANIES Updates on the Company’s private portfolio companies are available on the Company’s website at www.kaynefunds.com/ked/portfolio-companies/. LIQUIDITY AND CAPITAL RESOURCES As of October 24, 2013, the Company had $89.0 million of borrowings under its credit facility (at an interest rate of 2.27%), which represented 46.9% of its borrowing base of $189.8 million (47.0% of its borrowing base attributable to quoted securities). At the same date, the Company’s asset coverage ratio under the Investment Company Act of 1940 was 444%. The maximum amount that the Company can borrow under its credit facility is limited to the lesser of the commitment amount of $95.0 million and its borrowing base.
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