http://www.businesswire.com/news/home/20091104006524/en
HOUSTON--(Business Wire)--
Kayne Anderson MLP Investment Company (the "Company") (NYSE: KYN) announced
today that it has completed a private placement of $110 million, aggregate
principal amount, of senior unsecured fixed and floating rate notes (the "Senior
Unsecured Notes"). Net proceeds from the private placement will be used to repay
certain of the Company`s current borrowings.
The table below sets forth the key terms of each series of the Senior Unsecured
Notes:
Series Principal Fixed / Floating Rate Maturity
($ in millions)
M $60 Fixed 4.56% 11/4/2014
N 50 Floating 3-month LIBOR + 185 bps 11/4/2014
Total $110
Based on a 3-month LIBOR rate of 0.28% on November 4, 2009, the interest rate
for Series N Senior Unsecured Notes is 2.13%.
Proceeds from the Senior Unsecured Notes offering, net of $1.7 million in fees,
expenses and accrued interest, will be used to repay the following borrowings:
Instrument Borrowings/ Fixed / Floating Rate Maturity
Principal
($ in millions)
Credit Facility $64 Floating 1-month LIBOR + 225 bps 6/25/2010
Series H 20 Floating 3-month LIBOR + 225 bps 6/19/2011
Series J 24 Floating 3-month LIBOR + 225 bps 6/19/2012
Total $108
"We are very pleased with this transaction," said Kevin McCarthy, CEO and
President of the Company. "KYN was able to extend the maturities of its existing
floating rate notes at an attractive spread and to refinance borrowings on its
revolving credit facility with 5-year notes at very attractive rates."
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 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 differ from the Company's historical experience and its
present expectations or projections indicated in any forward-looking statements.
These risks include, but are not limited to, changes in economic and political
conditions; regulatory and legal changes; MLP industry risk; leverage risk;
valuation risk; interest rate risk; tax risk; and other risks discussed in the
Company'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
Company undertakes no obligation to publicly update or revise any
forward-looking statements made herein. There is no assurance that the Company's
investment objectives will be attained.
KA Fund Advisors, LLC
Monique Vo, 877-657-3863
http://www.kaynefunds.com
Copyright Business Wire 2009
