HOUSTON, Dec. 22, 2017 (GLOBE NEWSWIRE) — Kayne Anderson Energy Development Company (the “Company”) (NYSE:KED) announced today that the Tax Cut and Jobs Act (the “Tax Reform Bill”) had a positive impact on the Company’s net asset value. As of December 22, 2017, the Company’s net asset value per share was $17.87, which included an increase of $0.98 (5.8%) as a result of the enactment of the Tax Reform Bill today.
Prior to enactment of the Tax Reform Bill, the Company’s deferred tax liability was based on the federal tax rate of 35% plus a blended state rate. The Tax Reform Bill cut the federal rate to 21%, significantly reducing the Company’s deferred tax liability and resulting in the increase to net asset value. The lower rate of 21% plus a blended state rate will also be used to value the Company’s deferred tax liability going forward.
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.