Kayne Anderson MLP Investment Company Completes $185 Million Offering of Series F Auction Rate Senior Notes
Kayne Anderson MLP Investment Company (the “Company”) has announced the successful completion of its $185 million offering of Series F Auction Rate Senior Notes (”Series F Senior Notes”). The Series F Senior Notes are rated ‘Aaa’ and ‘AAA’ by Moody’s Investors Service, Inc. and Fitch Ratings, respectively. The initial interest rate on the Series F Senior Notes is 5.15%. The subsequent interest rates for the Series F Senior Notes will be determined at weekly auctions. The Company has $505 million in Auction Rate Senior Notes outstanding (21.3% of pro forma total assets as of 5/31/07) and $75 million of Auction Rate Preferred Stock outstanding (3.2% of pro forma total assets as of 5/31/07).
The net proceeds of the offering of Series F Senior Notes will be approximately $183 million after the payment of underwriting discounts and offering costs. The Company plans to use the net proceeds from the offering to repay indebtedness owed under its existing revolving credit facility and to invest the remaining proceeds in accordance with its investment objectives and policies as soon as practicable. As of June 25, 2007, the company had $120.5 million indebtedness outstanding under its revolving credit facility and had pending investments with Atlas Energy Resources, LLC for $32.7 million and Universal Compression Partners, L.P. for $13.1 million.
Kayne Anderson MLP Investment Company 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 Company’s investment objective is to obtain a high after-tax total return by investing at least 85% of its total assets in energy-related master limited partnerships and their affiliates, and in other companies that, as their principal business, operate assets used in the gathering, transporting, processing, storing, refining, distributing, mining or marketing natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal.
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