KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2020
(amounts in 000’s)
(UNAUDITED)
Description | No. of Shares/Units | Value | ||||||
Long-Term Investments — 134.1% | ||||||||
Equity Investments(1) — 126.4% | ||||||||
United States — 76.8% | ||||||||
Midstream Company(2) — 54.3% | ||||||||
Antero Midstream Corporation | 1,178 | $ | 7,978 | |||||
BP Midstream Partners LP(3) | 251 | 2,957 | ||||||
Cheniere Energy Partners, L.P.(3)(4) | 74 | 2,678 | ||||||
DCP Midstream, LP — Series A Preferred Units(3)(5) | 6,005 | 4,414 | ||||||
Energy Transfer LP(3) | 1,235 | 7,930 | ||||||
EnLink Midstream Partners, LP, — Series C Preferred Units(6) | 8,605 | 3,442 | ||||||
Enterprise Products Partners L.P.(3) | 591 | 10,370 | ||||||
Equitrans Midstream Corporation(4)(7) | 163 | 1,673 | ||||||
Equitrans Midstream Corporation — Convertible Preferred Units(4)(7)(8)(9) | 238 | 4,815 | ||||||
Kinder Morgan, Inc.(4) | 930 | 12,858 | ||||||
KNOT Offshore Partners LP(10) | 422 | 5,218 | ||||||
ONEOK, Inc. | 269 | 7,400 | ||||||
Magellan Midstream Partners, L.P.(3) | 156 | 5,930 | ||||||
MPLX LP(3) | 548 | 10,019 | ||||||
Phillips 66 Partners LP(3) | 126 | 3,392 | ||||||
Plains GP Holdings, L.P.(10)(11) | 695 | 5,078 | ||||||
Plains GP Holdings, L.P. — Plains AAP, L.P.(8)(10)(11)(12) | 690 | 5,041 | ||||||
Rattler Midstream LP(10) | 421 | 3,523 | ||||||
Shell Midstream Partners, L.P.(3) | 333 | 3,461 | ||||||
Targa Resources Corp. | 1,025 | 17,442 | ||||||
TC PipeLines, LP(3)(4) | 217 | 6,581 | ||||||
The Williams Companies, Inc.(4) | 1,347 | 27,970 | ||||||
|
| |||||||
160,170 | ||||||||
|
| |||||||
Renewable Infrastructure Company(2)(4) — 11.3% | ||||||||
Clearway Energy, Inc. — Class A | 231 | 5,569 | ||||||
Clearway Energy, Inc. — Class C | 102 | 2,605 | ||||||
Enviva Partners, LP(3) | 231 | 9,524 | ||||||
NextEra Energy Partners, LP | 257 | 15,490 | ||||||
|
| |||||||
33,188 | ||||||||
|
| |||||||
Utility Company(2)(4) — 9.5% | ||||||||
Dominion Energy, Inc. | 54 | 4,267 | ||||||
Eversource Energy | 48 | 4,131 | ||||||
NextEra Energy, Inc. | 31 | 8,766 | ||||||
Sempra Energy | 52 | 6,455 | ||||||
Xcel Energy Inc. | 64 | 4,432 | ||||||
|
| |||||||
28,051 | ||||||||
|
| |||||||
Other Energy Company(2) — 1.7% | ||||||||
Phillips 66 | 86 | 5,011 | ||||||
|
| |||||||
Total United States (Cost — $320,470) |
| 226,420 | ||||||
|
|
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2020
(amounts in 000’s)
(UNAUDITED)
Description | No. of Shares/Units | Value | ||||||
Canada — 35.7% | ||||||||
Renewable Infrastructure Company(2)(4) — 16.1% | ||||||||
Brookfield Renewable Partners L.P. | 343 | $ | 15,575 | |||||
Brookfield Renewable Corporation — Class A | 134 | 6,843 | ||||||
Innergex Renewable Energy Inc. | 750 | 12,949 | ||||||
Northland Power Inc. | 337 | 9,445 | ||||||
TransAlta Renewables Inc. | 228 | 2,787 | ||||||
|
| |||||||
47,599 | ||||||||
|
| |||||||
Midstream Company(2) — 15.0% | ||||||||
AltaGas Ltd.(4) | 130 | 1,682 | ||||||
Enbridge Inc. | 267 | 8,554 | ||||||
Gibson Energy Inc. | 106 | 1,927 | ||||||
Keyera Corp. | 362 | 6,617 | ||||||
Pembina Pipeline Corporation | 544 | 13,459 | ||||||
TC Energy Corporation(4) | 258 | 12,060 | ||||||
|
| |||||||
44,299 | ||||||||
|
| |||||||
Utility Company(2)(4) — 3.0% | ||||||||
Algonquin Power & Utilities Corp. | 641 | 8,858 | ||||||
|
| |||||||
Other Energy Company(2) — 1.6% | ||||||||
Jupiter Resources Inc.(8)(9)(13) | 1,229 | 4,607 | ||||||
|
| |||||||
Total Canada (Cost — $108,342) |
| 105,363 | ||||||
|
| |||||||
United Kingdom — 6.6% | ||||||||
Renewable Infrastructure Company(2)(4) — 5.3% | ||||||||
Atlantica Sustainable Infrastructure plc | 520 | 15,612 | ||||||
|
| |||||||
Utility Company(2)(4) — 1.3% | ||||||||
SSE plc | 225 | 3,786 | ||||||
|
| |||||||
Total United Kingdom (Cost — $14,504) |
| 19,398 | ||||||
|
| |||||||
Portugal — 1.9% | ||||||||
Utility Company(2)(4) — 1.2% | ||||||||
EDP — Energias de Portugal, S.A. | 672 | 3,399 | ||||||
|
| |||||||
Renewable Infrastructure Company(2)(4) — 0.7% | ||||||||
EDP Renováveis, S.A. | 129 | 2,207 | ||||||
|
| |||||||
Total Portugal (Cost — $5,244) |
| 5,606 | ||||||
|
| |||||||
Italy — 1.6% | ||||||||
Utility Company(2)(4) — 1.6% | ||||||||
Enel — Società per Azioni (Cost — $4,359) | 527 | 4,774 | ||||||
|
| |||||||
Spain — 1.5% | ||||||||
Utility Company(2)(4) — 1.5% | ||||||||
Iberdrola, S.A. (Cost — $4,069) | 356 | 4,474 | ||||||
|
| |||||||
Denmark — 1.2% | ||||||||
Renewable Infrastructure Company(2)(4) — 1.2% | ||||||||
Orsted A/S (Cost — $3,231) | 25 | 3,580 | ||||||
|
|
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2020
(amounts in 000’s)
(UNAUDITED)
Description | No. of Shares/ Units | Value | ||||||||||||||||||
Switzerland — 0.9% | ||||||||||||||||||||
Infrastructure Company(2) — 0.9% | ||||||||||||||||||||
Flughafen Zurich AG (Cost — $2,037) |
| 17 | $ | 2,558 | ||||||||||||||||
|
| |||||||||||||||||||
Germany — 0.2% | ||||||||||||||||||||
Utility Company(2)(4) — 0.2% | ||||||||||||||||||||
E.ON SE (Cost — $607) | 52 | 615 | ||||||||||||||||||
|
| |||||||||||||||||||
Total Equity Investments (Cost — $462,863) |
| 372,788 | ||||||||||||||||||
|
| |||||||||||||||||||
Interest Rate | Maturity Date | Principal Amount | ||||||||||||||||||
Debt Instruments — 7.7% | ||||||||||||||||||||
United States — 7.7% | ||||||||||||||||||||
Midstream Company(2) — 7.7% | ||||||||||||||||||||
Antero Midstream Corporation | 5.375 | % | 9/15/24 | $ | 2,701 | 2,492 | ||||||||||||||
Antero Midstream Corporation(8) | 5.750 | 3/1/27 | 2,814 | 2,512 | ||||||||||||||||
Antero Midstream Corporation(8) | 5.750 | 1/15/28 | 1,266 | 1,130 | ||||||||||||||||
Blue Racer Midstream, LLC(8) | 6.625 | 7/15/26 | 4,000 | 3,520 | ||||||||||||||||
Buckeye Partners, L.P. | 6.375 | 1/22/78 | 6,040 | 4,258 | ||||||||||||||||
Crestwood Holdings LLC(8) | (14 | ) | 3/6/23 | 6,733 | 4,354 | |||||||||||||||
EQM Midstream Partners, LP(4) | 6.500 | 7/15/48 | 515 | 520 | ||||||||||||||||
Tallgrass Energy Partners, LP(4)(8) | 4.750 | 10/1/23 | 2,000 | 1,960 | ||||||||||||||||
Tallgrass Energy Partners, LP(4)(8) | 6.000 | 3/1/27 | 1,307 | 1,222 | ||||||||||||||||
Tallgrass Energy Partners, LP(4)(8) | 5.500 | 1/15/28 | 1,000 | 915 | ||||||||||||||||
|
| |||||||||||||||||||
Total Debt Investments (Cost — $24,654) |
| 22,883 | ||||||||||||||||||
|
| |||||||||||||||||||
Total Long-Term Investments (Cost — $487,517) |
| 395,671 | ||||||||||||||||||
|
| |||||||||||||||||||
No. of Shares/ Units | ||||||||||||||||||||
Short-Term Investment — Money Market Fund — 6.0% |
| |||||||||||||||||||
JPMorgan 100% U.S. Treasury Securities Money Market Fund — Capital Shares, 0.02%(15) (Cost — $17,644) |
| 17,644 | 17,644 | |||||||||||||||||
|
| |||||||||||||||||||
Total Investments — 140.1% (Cost — $505,161) |
| 413,315 | ||||||||||||||||||
|
| |||||||||||||||||||
Debt |
| (84,515 | ) | |||||||||||||||||
Mandatory Redeemable Preferred Stock at Liquidation Value |
| (40,000 | ) | |||||||||||||||||
Other Assets in Excess of Other Liabilities |
| 6,132 | ||||||||||||||||||
|
| |||||||||||||||||||
Net Assets Applicable to Common Stockholders |
| $ | 294,932 | |||||||||||||||||
|
|
(1) | Unless otherwise noted, equity investments are common units/common shares. |
(2) | Refer to the “Glossary of Key Terms” for the definitions. |
(3) | Securities are treated as a publicly-traded partnership for RIC qualification purposes. To qualify as a RIC for tax purposes, the Fund may directly invest up to 25% of its total assets in equity and debt securities of entities treated as publicly-traded partnerships. The Fund had 16.0% of its total assets invested in publicly-traded partnerships at August 31, 2020. It is the Fund’s intention to be treated as a RIC for tax purposes. |
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2020
(amounts in 000’s)
(UNAUDITED)
(4) | For the purposes of the Fund’s investment policies, it considers NextGen companies to be Energy Companies and Infrastructure Companies that are meaningfully participating in, or benefitting from, the Energy Transition and includes Renewable Infrastructure Companies, Green Utilities and Midstream Companies that primarily own and/or operate Midstream Assets related to natural gas or liquefied natural gas. |
(5) | Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units. Distributions are payable at a rate of 7.375% per annum through December 15, 2022. On and after December 15, 2022, distributions on the Series A Preferred Units will be payable at a rate equal to the three-month LIBOR plus 5.148% per annum. |
(6) | Series C Preferred Units are cumulative redeemable perpetual units. Distributions on the Series C Preferred Units are payable at a rate of 6.0% per annum through December 15, 2022. On and after December 15, 2022, the rate will be based on three-month LIBOR, determined quarterly, plus 4.11%. |
(7) | On April 10, 2019, the Fund purchased, in a private placement, Series A Convertible Preferred Units (“EQM Convertible Preferred Units”) from EQM Midstream Partners, LP (“EQM”). On June 17, 2020, Equitrans Midstream Corporation (“ETRN”) and EQM completed their previously announced stock-for-unit merger. In connection with the merger, a portion of the EQM Convertible Preferred Units held by the Fund were exchanged for newly-issued ETRN Convertible Preferred Shares. The ETRN Convertible Preferred Shares will be convertible on a one-for-one basis into common shares of ETRN after April 10, 2021. The ETRN Convertible Preferred Shares pay quarterly cash distributions based on an annual rate of 9.75% through March 31, 2024. |
(8) | The Fund’s ability to sell this security is subject to certain legal or contractual restrictions. As of August 31, 2020, the aggregate value of restricted securities held by the Fund was $30,076 (7.1% of total assets), which included $20,654 of Level 2 securities and $9,422 of Level 3 securities. See Note 7 — Restricted Securities. |
(9) | Fair valued security. See Notes 2 and 3 in Notes to Financial Statements. |
(10) | This company is structured like an MLP, but is not treated as a publicly-traded partnership for regulated investment company (“RIC”) qualification purposes. |
(11) | The Fund believes that it is an affiliate of Plains AAP, L.P. (“PAGP-AAP”) and Plains GP Holdings, L.P. (“PAGP”). See Note 5 — Agreements and Affiliations. |
(12) | The Fund’s ownership of PAGP-AAP is exchangeable on a one-for-one basis into either PAGP shares or Plains All American Pipeline, L.P. (“PAA”) units at the Fund’s option. The Fund values its PAGP-AAP investment on an “as exchanged” basis based on the higher public market value of either PAGP or PAA. As of August 31, 2020, the Fund’s PAGP-AAP investment is valued at PAGP’s closing price. See Notes 3 and 7 in Notes to Financial Statements. |
(13) | Security is non-income producing. |
(14) | Floating rate first lien senior secured term loan. Security pays interest at a rate of LIBOR + 750 basis points (7.66% as of August 31, 2020). |
(15) | The rate indicated is the yield as of August 31, 2020. |
See accompanying notes to financial statements.