SOURCE: Kayne Anderson Energy Total Return Fund, Inc.

October 15, 2008 17:00 ET

Kayne Anderson Energy Total Return Fund, Inc. Updates Its Asset Coverage Ratios

HOUSTON, TX--(Marketwire - October 15, 2008) - Kayne Anderson Energy Total Return Fund, Inc. (the "Fund") (NYSE: KYE) announced today that as of close of business on October 14, 2008, the Fund's asset coverage ratio under the Investment Fund Act of 1940 ("1940 Act") with respect to senior securities representing indebtedness was 344%. The 1940 Act requires investment companies to have a minimum debt coverage ratio of 300% at the time of a common stock dividend declaration. The Fund'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.

Commencing this week, the Fund intends to announce its 1940 Act coverage ratio every Friday afternoon based on Thursday's closing prices. These ratios will be published on our website at www.kaynefunds.com/Kye1940Act.htm. The Fund has been announcing NAV on a weekly basis since November 2006.

The Fund currently has approximately $35 million of cash and expected cash from the settlement of trades over the next several days. If these proceeds were used to repay debt, our asset coverage ratio with respect to senior securities representing indebtedness would be 387%. "We continue to work hard in this market to achieve a substantial cushion in meeting our 1940 Act requirements and covenants. We think these ratios demonstrate that we continue to make progress in this regard," said Kevin McCarthy, Chairman and CEO of the Fund.

The Fund 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. The Fund'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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from the Fund's historical experience and its present expectations or projections indicated in any forward-looking statement. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; energy industry risk; commodity pricing risk; leverage risk; valuation risk; non-diversification risk; interest rate risk; tax risk; and other risks discussed in the Fund's filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund's investment objectives will be attained.

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