Business & Finance
Business and Finance
Business and Finance
Mon, June 14, 2010 Kayne Anderson Energy Total Return Fund, Inc. Enters Into New $80Million Unsecured Revolving Credit Facility
HOUSTON--([ BUSINESS WIRE ])--Kayne Anderson Energy Total Return Fund, Inc. (the aFunda) (NYSE: KYE) announced today that it has entered into a new $80 million unsecured revolving credit facility with a syndicate of lenders. The facility has a three-year commitment terminating on June 11, 2013.
Outstanding loan balances will accrue interest daily at a rate equal to the one-month LIBOR plus 1.75%, based on current asset coverage ratios. The interest rate may vary between LIBOR plus 1.75% to LIBOR plus 3.00%, depending on the Funda™s asset coverage ratios. The Fund will pay a fee of 0.40% on any unused amounts of the credit facility. The Fund currently has $18 million in borrowings under the facility. A copy of the new credit agreement is available on the Funda™s website at [ www.kaynefunds.com/Kye_othermaterialdocuments.htm ].
aWe are very pleased to enter into this new credit facility. We were able to increase the size of the facility by $5 million, extend the facilitya™s tenor from one year to three years and reduce the facilitya™s interest rate by 0.5% based on current asset coverage ratios. This is a testament to the strong support provided by our lending group,a 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 Funda™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 Funda™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 Funda™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 Funda™s investment objectives will be attained.
