KED - Energy Development Company

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)
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 08/31/2011)

($ in millions)

Short-Term Borrowings Commitment Available Borrowing Base Current Borrowings* Rate Maturity
Investment Facility $ 70 $123.7 $70 LIBOR + 200 bps 3/30/2013

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

INTEREST RATE SWAPS (as of 08/31/2011)

As of the above date, KED does not have interest rate swap positions.

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