Kayne Anderson companies place a combined $285 million of notes, $30 million of preferreds

By Lisa Kerner

Charlotte, N.C., April 27 - Kayne Anderson Energy Total Return Fund, Inc. announced it agreed to privately place $60 million of senior notes and $30 million of mandatory redeemable preferred stock with institutional investors.

The notes include $30 million of series F notes due 2016 with a rate of Libor plus 145 basis points, $20 million of series G notes due 2016 with a 4.38% interest rate and $10 million of series H notes due 2018 with a 3.71% interest rate.

Kayne Anderson Energy will place $30 million of series B preferreds with a distribution rate of 5.13% that will be redeemed after seven years.

Also on Wednesday, Kayne Anderson MLP Investment Co. said it agreed to sell $225 million of senior notes to institutional investors.

The notes include $60 million series U notes due 2016 with a rate of Libor plus 145 bps, $65 million series V notes due 2016 with a 3.71% interest rate and $100 million series W notes due 2018 with a 4.38% interest rate.

Proceeds from the placements will be used to repay debt, to make new portfolio investments and for general corporate purposes.

Closing of all the Kayne Anderson transactions are expected to occur in mid May.

The issuers are Houston-based investment companies.

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