Kayne Anderson MLP Investment Company Completes $110 Million Private Placement of Senior Unsecured Notes
November 04 2009 - 5:25PM
Business Wire
Kayne Anderson MLP Investment Company (the “Company”) (NYSE:
KYN) announced today that it has completed a private placement of
$110 million, aggregate principal amount, of senior unsecured fixed
and floating rate notes (the “Senior Unsecured Notes”). Net
proceeds from the private placement will be used to repay certain
of the Company’s current borrowings.
The table below sets forth the key terms of each series of the
Senior Unsecured Notes:
Series Principal
($ in millions)
Fixed / Floating Rate
Maturity 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 $1.7
million in fees, expenses and accrued interest, will be used to
repay the following borrowings:
Instrument
Borrowings/
Principal
($ in millions)
Fixed / Floating Rate
Maturity 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.
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