KA Fund Advisors outlines impact of SemGroup woes on fund net asset values

By Caroline Salls

Pittsburgh, July 25 - KA Fund Advisors, LLC said the recent adverse developments at SemGroup, LP and its SemGroup Energy Partners, LP affiliate have triggered a decline in the net asset values per share of three publicly traded Kayne Anderson funds, according to a news release.

Specifically, KA Fund Advisors said the Kayne Anderson MLP Investment Co.'s values have decreased $0.04 per share as a result of the decline in the value of the securities issued by SemGroup and SemGroup Energy; the values of the Kayne Anderson Energy Total Return Fund, Inc. have declined $0.07 per share; and the values of Kayne Anderson Energy Development Co. have declined $0.31 per share.

For the Kayne Anderson MLP fund and the Kayne Anderson Energy fund, KA said the impact is equivalent to a decline in net asset values of 0.2% compared to the values as of July 10, and the impact for Kayne Anderson Energy Development, the impact is equivalent to a 1.3% decline in net asset values compared to the values on May 31.

In addition, as a result of its bankruptcy filing, SemGroup's 8¾% senior notes declined in value to 17% of par on July 24 from about 96.5% of par on July 16, according to the release.

KA said SemGroup Energy's common unit price has also declined significantly to a close of $7.72 per unit on July 24 from a close of $22.80 per unit on July 16.

SemGroup, a Tulsa, Okla., privately held limited partnership that provides midstream services to North America's energy industry, filed for bankruptcy on July 22. Its Chapter 11 case number is 08-11525.

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