Kayne Anderson completes private placement of $60 million of notes, $30 million of preferreds

By Lisa Kerner

Charlotte, N.C., May 10 - Kayne Anderson Energy Total Return Fund, Inc. completed its private placement of $60 million of senior notes and $30 million of mandatory redeemable preferred stock with institutional investors, according to a company news release.

The company first announced the deal on April 27.

Proceeds will be used to repay borrowings under the company's revolving credit facility, to make new portfolio investments and for general corporate purposes.

The interest rates and maturity dates of the notes are as follows:

• $30 million series F notes with a rate of Libor plus 145 basis points and maturing in 2016;

• $20 million series G notes with a 3.71% interest rate maturing in 2016; and

• $10 million series H notes with a 4.38% interest rate maturing in 2018.

The preferreds consist of $30 million of series B preferreds with a distribution rate of 5.13% that will be redeemed after seven years.

The notes and the preferreds will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration, the release said.

Kayne Anderson is a Houston-based investment company.

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