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Kayne Anderson Energy Development Company Prices a Private Placement of $25 Million of Mandatory Redeemable Preferred Shares

March 17, 2015 6:46 PM EDT

HOUSTON--(BUSINESS WIRE)-- (NYSE: KED) Kayne Anderson Energy Development Company (the “Company” or “KED”) announced that it reached a conditional agreement with an institutional investor relating to a private placement of $25 million of Mandatory Redeemable Preferred Shares (the “MRP Shares”). The MRP Shares will mature five years from issuance and pay quarterly cash dividends at a rate of 3.37% per annum.

The issuance of the MRP Shares will be the first issuance under a 3-year, $100 million uncommitted private shelf facility provided by the institutional investor. The initial issuance and the shelf facility are expected to close on or before April 10, 2015. The closing is subject to confirmatory due diligence, legal documentation and other standard closing conditions. Proceeds from the initial issuance will be used to make new portfolio investments and for general corporate purposes.

The MRP Shares 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 Company is a non-diversified, closed-end investment company registered under the Investment Company Act of 1940. The Company's investment objective is to generate both current income and capital appreciation primarily through equity and debt investments. The Company will seek to achieve this objective by investing at least 80% of its net assets together with the proceeds of any borrowings (its "total assets") in securities of companies that derive the majority of their revenue from activities in the energy industry, including: (a) Midstream Energy Companies, which are businesses that operate assets used to gather, transport, process, treat, terminal and store natural gas, natural gas liquids, propane, crude oil or refined petroleum products; (b) Upstream Energy Companies, which are businesses engaged in the exploration, extraction and production of natural resources, including natural gas, natural gas liquids and crude oil, from onshore and offshore geological reservoirs; and (c) Other Energy Companies, which are businesses engaged in owning, leasing, managing, producing, processing and sale of coal and coal reserves; the marine transportation of crude oil, refined petroleum products, liquefied natural gas, as well as other energy-related natural resources using tank vessels and bulk carriers; and refining, marketing and distributing refined energy products, such as motor gasoline and propane to retail customers and industrial end-users.

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 Company'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 Company'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 Company 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.

KA Fund Advisors, LLC
Monique Vo, 877-657-3863
http://www.kaynefunds.com/

Source: Kayne Anderson



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