Kayne Anderson Fund Advisors

KED - Energy Development Company

KED - Leverage and Asset Coverage Ratios

ASSET COVERAGE RATIOS

The 1940 Act requires investment companies to have minimum debt and total leverage (debt and preferred stock) coverage ratios of 300% and 200%, respectively, at the time of a common stock dividend declaration. The Company's borrowing agreements contain similar restrictions and require it to have a minimum coverage ratio of 300% as of the last day of each month.

 Asset Coverage Ratios under the Investment Company Act of 1940 (“1940 Act”)
Date 
(Close of Business)
With respect to senior securities representing indebtedness
(300% minimum)
With respect to total leverage
(debt and preferred stock)
(200% minimum)
04/25/2013 401% - Actual NA
11/30/2012 443% - Actual NA
08/31/2012 423% - Actual NA
05/31/2012 398% - Actual NA
02/29/2012 430% - Actual NA
11/30/2011 409% - Actual NA
08/31/2011 425% - Actual NA
05/31/2011 451% - Actual NA
02/28/2011 502% - Actual NA
11/30/2010 470% - Actual NA
08/31/2010 477% - Actual NA

BALANCE SHEET

LEVERAGE SUMMARY (AS OF 4/25/2013)

($ in millions)

Short-Term BorrowingsCommitment AvailableBorrowing BaseCurrent Borrowings*RateMaturity
Investment Facility $ 95 $176.4 $89 LIBOR + 200 bps 3/30/2014

* The maximum amount that KED can borrow under its Investment Facility is limited to the lesser of the commitment amount and its borrowing base.

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