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Kayne Anderson Energy Infrastructure Fund Enters Into $175 Million Revolving Credit Facility

1. KYN secures a $175M unsecured revolving credit facility. It replaces a $135M credit facility. 2. The facility offers interest rates from SOFR+1.40% to SOFR+2.25%. It currently stands at SOFR+1.40%. 3. Maturity is extended to February 19, 2026. This alleviates near-term refinancing risk. 4. KYN maintains a focus on high after-tax returns and cash distributions. It invests primarily in energy infrastructure.

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FAQ

Why Bullish?

The new credit facility eases refinancing risk and improves liquidity, which investors have valued in similar historical instances. In past cases, companies that secured favorable terms during credit rollover periods saw positive price reactions.

How important is it?

While the refinancing move is materially important as it mitigates near-term risks and ensures liquidity, it is a routine update rather than a transformative business change. This makes the impact moderate yet significant for investors monitoring credit stability.

Why Short Term?

The immediate benefit of avoiding a near-term maturity and locking in favorable rates will influence short-term sentiment. Similar refinancing updates have historically led to near-term positive market responses.

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HOUSTON, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) has entered into a $175 million unsecured revolving credit facility (the “Credit Facility”). The Credit Facility matures on February 19, 2026 and replaces the Company’s $135 million credit facility that was scheduled to mature on February 20, 2025. The interest rate on outstanding borrowings under the Credit Facility may vary between SOFR plus 1.40% and SOFR plus 2.25%, depending on the Company’s asset coverage ratios. Based on the Company’s current asset coverage ratios, the interest rate is SOFR plus 1.40%. The Company will pay a commitment fee of 0.20% per annum on any unused amounts of the Credit Facility. As of February 20, 2025, the Company had $101 million borrowed under the Credit Facility. A copy of the credit agreement is available on the Company’s website at www.kaynefunds.com/kyn. Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The Company’s investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. KYN intends to achieve this objective by investing at least 80% of its total assets in securities of Energy Infrastructure Companies. See Glossary of Key Terms in the Company’s most recent quarterly report for a description of these investment categories and the meaning of capitalized terms. The Company pays cash distributions to common stockholders at a rate that may be adjusted from time to time. Distribution amounts are not guaranteed and may vary depending on a number of factors, including changes in portfolio holdings and market conditions.  This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer or sale is not permitted. Nothing contained in this press release is intended to recommend any investment policy or investment strategy or consider any investor’s specific objectives or circumstances. Before investing, please consult with your investment, tax, or legal adviser regarding your individual circumstances. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This communication contains statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events. These and other statements not relating strictly to historical or current facts constitute forward-looking statements as defined under the U.S. federal securities laws. Forward-looking statements involve a variety of risks and uncertainties. These risks include but are not limited to changes in economic and political conditions; regulatory and legal changes; energy industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in detail in the Company’s filings with the SEC, available at www.kaynefunds.com or www.sec.gov. Actual events could differ materially from these statements or our present expectations or projections. You should not place undue reliance on these forward-looking statements, which speak only as of the date they are made. Kayne Anderson undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Company’s investment objectives will be attained. Contact investor relations at 877-657-3863 or cef@kayneanderson.com.

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