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Proc-Type: 2001,MIC-CLEAR
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
By: /s/ David Shladovsky HOUSTON, TX -- (Marketwire - April 02, 2009) - (NYSE: KED) Kayne Anderson Energy Development
Company (the "Company") today declared its quarterly dividend of $0.35 per
share for the period December 1, 2008 to February 28, 2009.
The dividend will be payable on April 30, 2009 to common stockholders of
record on April 17, 2009, with an ex-dividend date of April 15, 2009. It is
anticipated that substantially all of this dividend will be treated as a
"distribution" or return of capital for tax purposes. The final
determination of such amount will be made in early 2010 when the Company
can determine its earnings and profits. The final tax status of the
dividend/distribution may differ substantially from this preliminary
information.
Based on the Company's portfolio of investments and average yields on those
investments as of February 28, 2009, we estimate dividends, distributions,
and interest income will be approximately $5.2 million per quarter. Such
estimate does not reflect any changes in cash distributions made by MLPs or
changes in interest rates based on the movement in LIBOR rates since
February 28, 2009.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Securities Exchange Act of 1934
Date of Report: April 02, 2009
(Date of earliest event reported)
Kayne Anderson Energy Development Company
(Exact name of registrant as specified in its charter)
Maryland
(State or other jurisdiction
of incorporation)
814-00725
(Commission File Number)
20-4991752
(IRS Employer
Identification Number)
717 Texas Avenue - Suite 3100, Houston, TX
(Address of principal executive offices)
77002
(Zip Code)
(713) 493-2020
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Item 8.01. Other Events
Kayne Anderson Energy Development Company Declares Dividend of $0.35 per Share for Q1 2009 and Updates Guidance
None
(b) Pro forma financial information:
None
(c) Shell company transactions:
None
(d) Exhibits
99.1 Press Release of Kayne Anderson Energy Development Company dated April 02, 2009
Dated: April 03, 2009
KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY
David Shladovsky
Secretary and Chief Compliance Officer
Exhibit No.
Description
99.1
Press Release of Kayne Anderson Energy Development Company dated April 02, 2009
Amount Invested Average Annual
Portfolio Category ($ in millions) Yield(1)(2)
--------------- --------------
Private MLPs $ 91.2 10.8%
--------------- --------------
Public MLPs and MLP Affiliates $ 52.6 16.3%
--------------- --------------
Fixed Income(3) $ 18.3 13.8%
--------------- --------------
Repurchase Agreements(4) $ 1.6 0.3%
--------------- --------------
(1) Average yields include return of capital distributions. Return of
capital distributions are reported as a reduction to gross dividends
and distributions to arrive at net investment income reported under
generally accepted accounting principles.
(2) Average yields for Public MLPs and MLP Affiliates are based on the most
recently declared distributions as of February 28, 2009. Amount
invested and average yields for Private MLPs are based on February 28,
2009 valuations and distribution rates.
(3) The amount invested and average yield excludes the Company's ProPetro
investment (the Company does not anticipate receiving cash interest
payments during fiscal 2009 on this investment). The average yield
includes amortization of the purchase price discount, as reported on
the Company's income statement.
(4) Includes repurchase agreements at February 28, 2009 less the Q1 2009
dividend of $3.5 million.
Base Management Fees and Other Operating Expenses -- Base management fees are estimated to be approximately $0.7 million per quarter. Other operating expenses are estimated to be approximately $0.55 million per quarter.
Interest Expense -- Based on $52.0 million borrowed under the Company's senior secured credit facility as of February 28, 2009, interest expense is estimated to be approximately $0.35 million per quarter assuming a LIBOR rate of 0.48%.
The Company does not provide guidance on realized gains or incentive management fees.
Payment of future dividends is subject to approval by the Company's Board of Directors, as well as meeting the covenants of the Company's senior secured credit facility. Should distributions and interest income from the Company's portfolio investments be less than expectations, the Company will determine the appropriate dividend rate at that time.
The Company is a non-diversified, closed-end investment company that elected to be treated as a business development company 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.
Contact: KA Fund Advisors, LLC Monique Vo 877-657-3863 http://www.kaynefunds.com/-----END PRIVACY-ENHANCED MESSAGE-----