Kayne Anderson Energy Total Return Fund, Inc. Enters Into New $75 Million Unsecured Revolving Credit Facility
2009-07-02 15:39:03 -
Kayne Anderson Energy Total Return Fund, Inc. (the “Fund”) (NYSE:KYE) announced today that it has entered into a new $75 million unsecured revolving credit facility with a syndicate of lenders. JPMorgan Chase Bank, N.A. was lead arranger of the facility and Bank of America, N.A., UBS Investment Bank and Citibank, N.A. participated in the syndication.
The facility has a 364-day commitment terminating on June 25, 2010.
Outstanding loan balances will accrue interest daily at a rate equal to the one-month LIBOR plus 2.25% based on the Fund's current asset coverage ratio. The interest rate may vary between LIBOR plus 2.25% and LIBOR plus 3.50% depending on the asset coverage ratio. The Fund will pay a fee equal to a rate of 0.50% on any unused amounts of the credit facility. The Fund currently has no borrowings under the facility. A copy of the new credit agreement is available on the Fund’s website at www.kaynefunds.com/Kye_othermaterialdocuments.htm : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .
“We are very pleased with the support of our lenders and believe the new facility is more than adequate for our borrowing needs over the next twelve months,” said Kevin McCarthy, CEO and President.
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.
KA Fund Advisors, LLCMonique Vo, 877-657-3863 www.kaynefunds.com/ : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
