Kayne Anderson Energy Total Return Fund Prices $20 Million of Series D Mandatory Redeemable Preferred Shares and Announces th...
November 08 2017 - 4:28PM
Kayne Anderson Energy Total Return Fund, Inc. (the “Fund”)
(NYSE:KYE) announced today that it has reached a conditional
agreement with an institutional investor relating to a private
placement of $20 million of Mandatory Redeemable Preferred Shares
(“Series D MRP Shares”). The Series D MRP Shares will be
mandatorily redeemable seven years from issuance and pay quarterly
cash dividends at a rate of 4.07% per annum. The private placement
is expected to close on or about November 29, 2017. The closing is
subject to investor due diligence, legal documentation and other
standard closing conditions. The Series D MRP Shares will not be
registered under the Securities Act of 1933, and may not be offered
or sold in the United States absent registration or an applicable
exemption from registration.
The Fund also announced that it will redeem all of its
outstanding Series B Mandatory Redeemable Preferred Shares (“Series
B MRP Shares”) on December 8, 2017 at a redemption price equal to
the $30 million aggregate liquidation preference plus accumulated
but unpaid dividends. The Series B MRP Shares pay cash dividends at
a rate of 5.13% per annum and are mandatorily redeemable on May 10,
2018. The redemption of the Series B MRP Shares will be funded with
net proceeds from the private placement of the Series D MRP Shares
and a combination of cash on hand and borrowings under the Fund’s
credit facilities.
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, 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 differ from the Fund’s historical experience and
its present expectations or projections indicated in any
forward-looking statements. These risks include, but are not
limited to, changes in economic and political conditions;
regulatory and legal changes; MLP industry risk; leverage risk;
valuation 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 objective
will be attained.
Contact:
KA Fund Advisors, LLCMonique Vo,
877-657-3863http://www.kaynefunds.com/
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