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Kayne Anderson Energy Total Return Fund, Inc.: Kayne Anderson Energy Total Return Fund, Inc. Completes Repurchase of $60 Millio

^{Published on 2008-12-09 10:48:45 - Market Wire}
 

HOUSTON, TX--(Marketwire - December 9, 2008) - Kayne Anderson Energy Total Return Fund, Inc. (the "Fund") (NYSE: [ KYE ]) announced that on Friday, December 5, 2008, it completed the repurchase of $60 million aggregate principal amount of its senior notes series A, B and C (the "Senior Notes") at 103% of par value, as detailed in the table below. The Fund utilized cash on hand to repurchase the Senior Notes to comply with asset coverage ratios as required by the Investment Company Act of 1940 (the "1940 Act"). After close of the transaction on Friday, December 5, 2008, the Fund's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 327%, which is above the required level of 300%. As of December 5, 2008, the Fund had short-term investments of $45 million in cash and repurchase agreements.

 Principal Before Principal Principal Series Redemption Redeemed Remaining Maturity ------ ----------- ---------- ----------- --------- A 53,000,000 44,000,000 9,000,000 8/13/2011 B 35,000,000 7,000,000 28,000,000 8/13/2012 C 137,000,000 9,000,000 128,000,000 8/13/2013 ------ ----------- ---------- ----------- --------- Total $225,000,000 $60,000,000 $165,000,000 

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.