Kayne Anderson buys back $80 million floaters amid volatile market

By Susanna Moon

Chicago, Oct. 10 - Kayne Anderson MLP Investment Co. said it repurchased $80 million principal amount of floating-rate series L senior notes at 101% of par.

The company said it decided to use cash on hand to repay debt and keep in compliance with asset coverage ratios as required by the Investment Company Act of 1940 in light of extreme volatility in the master limited partnership market.

After repayment of the notes, the company's 1940 Act asset coverage ratio was 301% based on closing prices on Wednesday.

"We have been working diligently to maintain asset coverage ratios for the purposes of both the 1940 Act and the covenants on our senior notes," Kevin McCarthy, chief executive officer of the company, said in a press release.

"While this has not been easy in such a difficult market, we want to assure our shareholders and noteholders that we are striving hard to meet the needs of both by maintaining our coverage ratios while selling as few securities as possible into this market," McCarthy said.

Kayne Anderson is a Los Angeles-based non-diversified, closed-end management investment company that seeks a high after-tax total return by investing at least 85% of total assets plus any borrowing in energy-related master limited partnerships.

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