HOUSTON--(BUSINESS WIRE)--Kayne Anderson Energy Total Return Fund, Inc. (the “Fund”) (NYSE:KYE) announced today that it has entered into a $50 million unsecured credit agreement (the “Bank Facility”) with the Bank of Nova Scotia. The initial term of the Bank Facility extends through June 13, 2017, at which time the Fund has the option to extend the maturity date by one additional year and convert any borrowings outstanding at the time of conversion into a term loan. When combined with the Fund’s existing revolving credit facility, the Bank Facility increases the Fund’s revolving credit commitments to $150 million.
Borrowings under the Bank Facility will bear interest at a rate of 1-month LIBOR plus 1.30%. The interest rate may vary between LIBOR plus 1.30% and LIBOR plus 1.75%, depending on the Fund’s asset coverage ratios. The Fund will pay a commitment fee equal to a rate of 0.25% on any unused amounts of the Bank Facility during the initial term. The Bank Facility is repayable at par at any time. A copy of the credit agreement is available on the Fund’s website at www.kaynefunds.com/kye/other-material-documents.
The Fund is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940 whose common stock is traded on the NYSE. The Fund’s investment objective is to obtain a high total return with an emphasis on current income by investing primarily in securities of companies engaged in the energy industry, principally including publicly-traded energy-related master limited partnerships and limited liability companies taxed as partnerships and their affiliates, energy-related U.S. and Canadian trusts and income trusts and other companies that derive at least 50% of their revenues from operating assets used in, or providing energy-related services for, the exploration, development, production, gathering, transportation, processing, storing, refining, distribution, mining or marketing of natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from the Fund’s historical experience and its present expectations or projections indicated in any forward-looking statement. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; energy industry risk; commodity pricing risk; leverage risk; valuation risk; non-diversification risk; interest rate risk; tax risk; and other risks discussed in the Fund’s filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund’s investment objectives will be attained.