By Lisa Kerner
Charlotte, N.C., Feb. 16 - Kayne Anderson Energy Total Return Fund, Inc. said it reached a conditional agreement with institutional investors for a private placement of $85 million of senior unsecured notes and $90 million of mandatory redeemable preferred stock.
Proceeds will be used to repay current borrowings, to make new portfolio investments and for general corporate purposes, a company news release said.
The company said $58 million of the senior notes have a fixed rate of 4.15% and a five-year maturity.
The remaining $27 million of the notes are priced at Libor plus 155 basis points and also have a five-year maturity.
According to Kayne Anderson, the preferred stock has a 5.48% dividend and a seven-year maturity.
Closing is expected to occur March 4.
Kayne Anderson is a Houston-based investment company.
| Issuer: | Kayne Anderson Energy Total Return Fund, Inc.
|
| Issue: | Notes, preferred stock
|
| Amount: | $175 million
|
| Settlement date: | March 4
|
| Distribution: | Private placement
|
|
|
| Fixed-rate notes
|
| Issue: | Senior unsecured notes
|
| Amount: | $58 million
|
| Maturity: | Five years
|
| Coupon: | 4.15%
|
|
|
| Floating-rate notes
|
| Issue: | Senior unsecured notes
|
| Amount: | $27 million
|
| Maturity: | Five years
|
| Coupon: | Libor plus 155 bps
|
|
|
| Preferreds
|
| Issue: | Mandatory redeemable preferred stock
|
| Amount: | $90 million
|
| Maturity: | Seven years
|
| Dividend: | 5.48%
|
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