Kayne Anderson Fund Secures $250 Million Credit Line
The unsecured revolving facility replaces a $175 million credit line and matures in February 2028.
Updated on Nov. 10, 2026 in Corporate Finance
Kayne Anderson Energy Infrastructure Fund, Inc. entered into a $250 million unsecured revolving credit facility that replaces its existing $175 million credit facility. As of November 10, 2026, the fund had $83 million outstanding under the new facility.
Why it matters
The new facility extends the fund's borrowing arrangement and sets the cost of borrowing according to the fund's asset coverage ratios. Its terms show how the closed-end fund finances its investments in energy infrastructure companies.
The facility carries a SOFR-based spread that is currently 1.30%, within a range of 1.30% to 2.15%, plus a 0.20% annual commitment fee on unused balances. As of November 10, 2026, $83 million was outstanding, leaving most of the $250 million capacity undrawn.
The players
Kayne Anderson Energy Infrastructure Fund, Inc.
A non-diversified, closed-end management investment company registered under the Investment Company Act of 1940 that intends to invest at least 80% of its total assets in securities of Energy Infrastructure Companies.
The details
Borrowings bear interest at SOFR plus a spread tied to the company's asset coverage ratios, and the fund pays a commitment fee of 0.20% per annum on any unused portion. The facility matures on February 17, 2028, and a copy of the credit agreement is available on the company's website.
Timeline
February 18, 2027: The replaced $175 million credit facility was scheduled to mature.
November 10, 2026: The company reported $83 million outstanding under the new facility.
February 17, 2028: The new $250 million credit facility matures.
Market Dynamics
The fund operates as a registered closed-end vehicle under the Investment Company Act of 1940, which permits borrowing against asset coverage thresholds. The facility's pricing, tied to the fund's asset coverage ratios, illustrates how these funds' cost of leverage responds directly to their regulatory coverage levels.
Shareholders in the fund are exposed to the cost of its borrowing, which is priced at SOFR plus a spread that is currently 1.30%. Investors tracking the fund's leverage should note the facility's February 2028 maturity and the asset-coverage linkage that can change the applicable spread.
The takeaway
Investors can check a fund's leverage terms by reviewing its credit agreement, including how interest spreads and commitment fees are set. Tracking the asset coverage ratios that drive pricing helps explain changes in a closed-end fund's borrowing costs.
Further reading
For related coverage, explore Corporate Finance reporting on how companies manage their borrowing arrangements.
More information
A copy of the Kayne Anderson KYN fund credit agreement is available on the company's website.
Source note: This article includes information reported by The Manila times.
