Kayne Anderson Announces the Cancellation of Adjourned KYN, KYE, KMF and KED Stockholder Meetings
KA Fund Advisors, LLC (“KAFA”) announced today that its parent company,
Kayne Anderson Capital Advisors, L.P. (“KACALP”), and Ares Management,
L.P. (“Ares”) have mutually agreed to terminate their definitive merger
agreement (the “Merger Agreement”).
While both companies believe in the current investment opportunities in
energy, the two companies had a different view as to how best to proceed
with the business combination in response to the current market
conditions in the energy sector. After thoughtful discussions, both
sides decided it was best not to pursue the transaction at this time.
The two parties continue to have tremendous respect and admiration for
each other’s organization and, as a result, Ares, its affiliates and
certain of its principals will invest $150 million into KACALP’s energy
activities, including energy private equity, private energy income, and
energy infrastructure marketable securities funds managed by KACALP. In
addition, the two firms will look for additional collaborative marketing
opportunities, including jointly managing separately managed accounts or
other products.
Stockholder approvals of new investment management agreements for Kayne
Anderson MLP Investment Company (“KYN”), Kayne Anderson Energy Total
Return Fund, Inc. (“KYE”), Kayne Anderson Midstream/Energy Fund, Inc.
(“KMF”) and Kayne Anderson Energy Development Company (“KED”, and
collectively the “Funds”) were required under the Merger Agreement
because of the pending change of control of KAFA. Because the Merger
Agreement has been terminated, approvals by the stockholders of the
Funds are no longer necessary, and, as a result, the Boards of Directors
of the Funds have withdrawn the proposals for new investment management
agreements and have cancelled the adjourned special stockholder meetings
for the Funds scheduled for October 30, 2015.
Kevin McCarthy and J.C. Frey, the co-portfolio managers of the Funds,
will continue managing the Funds with the same investment objectives and
policies that they are currently employing. KAFA will continue to serve
as the investment adviser for the Funds, and the existing investment
management agreements will remain in place.
More information about the termination of the merger agreement can be
found in the press release posted on KAFA’s home page at www.kaynefunds.com.
Kayne Anderson MLP Investment Company is a non-diversified,
closed-end management investment company registered under the Investment
Company Act of 1940, whose common stock is traded on the New York Stock
Exchange (“NYSE”) under the symbol “KYN.” KYN’s investment objective is
to obtain a high after-tax total return by investing at least 85% of its
total assets in energy-related master limited partnerships and their
affiliates, and in other companies that, as their principal business,
operate assets used in the gathering, transporting, processing, storing,
refining, distributing, mining or marketing of natural gas, natural gas
liquids (including propane), crude oil, refined petroleum products or
coal.
Kayne Anderson Energy Total Return Fund, Inc. 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 under the
symbol “KYE.” KYE’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 royalty 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.
Kayne Anderson Midstream/Energy Fund, Inc. 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 under the
symbol “KMF.” KMF’s investment objective is to provide a high level of
total return with an emphasis on making quarterly cash distributions to
its stockholders by investing at least 80% of its total assets in
securities of companies in the Midstream/Energy Sector, consisting of:
(a) Midstream Master Limited Partnerships (“MLPs”), (b) Midstream
Companies, (c) Other MLPs and (d) Other Energy Companies. KMF
anticipates that the majority of its investments will consist of
investments in Midstream MLPs and Midstream Companies.
Kayne Anderson Energy Development Company is a non-diversified,
closed-end investment company registered under the Investment Company
Act of 1940, whose common stock is traded on the NYSE under the symbol
“KED.” KED’s investment objective is to generate both current income and
capital appreciation primarily through equity and debt investments. KED
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.
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