By Kenneth Lim
Boston, Aug. 14 - Kayne Anderson Energy Total Return Fund, Inc. placed $225 million of senior unsecured fixed-rate notes to a number of institutional accredited investors, according to a filing with the Securities and Exchange Commission.
The fund sold $53 million of 5.65% notes due Aug. 13, 2011, $35 million of 5.9% notes due Aug. 13, 2012 and $137 million of 6.06% notes due Aug. 13, 2013.
The investors include Massachusetts Mutual Life Insurance Co., Prudential Capital Group, Sun Life Financial and United of Omaha Life Insurance Co.
Proceeds will be used to redeem all $155.9 million of the fund's outstanding auction rate preferred stock and to repay part of its borrowings under the fund's revolving credit facility. The auction rate preferreds will be redeemed on Sept. 2 to 4.
Kayne Anderson Energy is a Los Angeles-based closed end equity fund that invests in global stocks of companies in the energy industry. It is managed by Kayne Anderson Capital Advisors, LP.
"We are pleased with this cost-effective and long-term financing as it provides liquidity to the holders of our ARP and continues to provide the benefits of leverage to our common shareholders," Kayne Anderson Energy chief executive and president Kevin McCarthy said in a statement.
| Issuer: | Kayne Anderson Energy Total Return Fund, Inc.
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| Securities description: | Senior unsecured notes
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| Investors: | Massachusetts Mutual Life Insurance Co., Prudential Capital Group, Sun Life Financial and United of Omaha Life Insurance Co.
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| Series A notes
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| Amount: | $53 million
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| Maturity: | Aug. 13, 2011
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| Coupon: | 5.65%
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| Series B notes
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| Amount: | $35 million
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| Maturity: | Aug. 13, 2012
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| Coupon: | 5.9%
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| Series C notes
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| Amount: | $137 million
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| Maturity: | Aug. 13, 2013
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| Coupon: | 6.06%
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