At a glance
- The new facility matures on Feb. 17, 2028, close to a year beyond the line it replaces.
- For shareholders, drawn balances price at 1.30% over SOFR at current asset coverage and at 2.15% if coverage weakens, 85 basis points more on every dollar drawn.
- The fund reported $83 million outstanding under the facility as of Nov. 10, leaving $167 million undrawn.
Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) entered into a $250 million unsecured revolving credit facility on Nov. 10, replacing a $175 million line that was scheduled to mature on Feb. 18, 2027.
The new facility matures on Feb. 17, 2028, close to a year beyond the line it replaces. Draws bear interest at SOFR plus a spread of 1.30% to 2.15%, based on the fund's asset coverage ratios. At current coverage the applicable spread is 1.30%, the company said. A commitment fee of 0.20% a year applies to the unused portion.
For shareholders, drawn balances price at 1.30% over SOFR at current asset coverage and at 2.15% if coverage weakens, 85 basis points more on every dollar drawn.
The fund reported $83 million outstanding under the facility as of Nov. 10, leaving $167 million undrawn. At 0.20% on the unused balance, the commitment fee comes to about $334,000 a year.
KYN is a non-diversified, closed-end management investment company that must hold at least 80% of total assets in securities of energy infrastructure companies. The facility follows a $15 million preferred placement by a Kayne Anderson closed-end energy fund on Oct. 30, with net proceeds earmarked to refinance existing leverage and for general corporate purposes, as Private Wealth Daily previously reported. The replacement adds $75 million of capacity beyond the prior line.
Reported by the Fundraising desk from GlobeNewswire — Finance and Private Wealth Daily archive. Published . Corrections