Kayne Anderson MLP Investment Co. (NYSE: KYN) closed its public offering of 5 million series F mandatory redeemable preferred shares at US $25 per share.
Underwriters purchased 600,000 shares pursuant to their over-allotment option. The shares pay cash dividends at a rate of 3.5% per annum and have a mandatory redemption date of April 15, 2020. Beginning on April 8, the shares will be publicly traded on the NYSE under the symbol “KYN Pr F”. The company received net proceeds of US $122.5 million.
Net proceeds will be used to redeem its series D mandatory redeemable preferred shares (NYSE: KYN Pr D), to make investments in portfolio companies in accordance with its investment objective and policies, to repay indebtedness, and for general corporate purposes.
Merrill Lynch, Pierce, Fenner & Smith Inc., Citigroup, and UBS Investment Bank are joint book-running managers.
The company also filed with the Securities and Exchange Commission a notice of its intention to redeem all 4 million of its series D mandatory redeemable preferred shares (total liquidation preference of US $100 million) at US $25.269375 per share with a redemption date of May 13.
The redemption price per share is equal to the liquidation preference per share of US $25, plus (i) accumulated but unpaid dividends of US $0.144375, calculated using the current rate of 4.95% accrued to, but not including, the redemption date and (ii) a redemption premium of US $0.125 (0.5% of the liquidation preference per share).
American Stock Transfer & Trust Co. is the paying agent and the company’s transfer agent.
Kayne Anderson MLP Investment Co. is a non-diversified, closed-end management investment company focused on obtaining a high after-tax total return by investing at least 85% of its total assets in energy-related MLPs and their affiliates. The company is based in Houston.
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