Kayne Anderson MLP Investment Company Announces Two Private Placements of Common Stock
June 15 2010 - 7:31PM
Business Wire
Kayne Anderson MLP Investment Company (the “Company”) (NYSE:
KYN) announced today that it recently completed two private
placements of unregistered common stock to members of senior
management of Inergy Holdings, L.P. (“NRGP”) and Magellan Midstream
Partners, L.P. (“MMP”). The Company issued a total of 1.5 million
shares at an average price of $23.90 per share. The shares were
issued based on a 5% discount to the five-day volume-weighted
average price before the closing date of each transaction.
Simultaneous with the issuance of the Company’s common stock,
the Company purchased $26.3 million of NRGP common units and $9.9
million of MMP common units owned by such members of senior
management. The common units purchased in each transaction are
unregistered, and the purchase price in each transaction was
calculated based on a 5% discount to the five-day volume-weighted
average price before the closing date of each transaction. The
purchase price was funded by the issuance of the 1.5 million KYN
shares referenced above. In addition, the Company purchased $8.8
million of unregistered NRGP common units owned by members of NRGP
senior management with cash at a 6% discount to five-day
volume-weighted average price before the closing date. The pricing
for these transactions reflects the fact that the securities
exchanged are unregistered and therefore less liquid than
registered securities until certain holding period requirements are
met.
“We are very pleased that we were able to complete these
transactions as they accomplish two things for KYN,” stated Kevin
McCarthy, CEO of the Company. “First, we were able to issue stock
at a smaller discount than what we could accomplish through an
underwritten secondary offering. Second, we were able to purchase
MLP securities which are consistent with our investment objectives
at a discount to the market.”
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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