By Angela McDaniels
Tacoma, Wash., March 26 - Kayne Anderson MLP Investment Co. priced $110 million of 3.5% series F mandatory redeemable preferred shares, according to a company news release.
There is a $15 million over-allotment option.
The preferreds have a mandatory redemption date of April 15, 2020. They are also subject to mandatory redemption at par if the company fails to maintain asset coverage of at least 225% or if it fails to maintain at least $110 million of assets in its portfolio and it does not cure the failure within 30 days.
Price talk was 3.5% to 3.625%, according to a trader.
BofA Merrill Lynch, Citigroup Global Markets Inc. and UBS Investment Bank are the joint bookrunners. RBC Capital Markets, LLC is the lead manager.
The preferreds are callable at any time beginning in April 2014. Prior to that, they are callable at 102% of par if the asset coverage is greater than 225% but less than or equal to 235%.
Kayne Anderson has applied to list the new preferreds on the New York Stock Exchange under the ticker symbol "KYNPF."
The company will use the proceeds to redeem its series D mandatory redeemable preferred shares, to make investments in portfolio companies, to repay debt and for general corporate purposes.
Kayne Anderson MLP Investment is a management investment company based in Houston that invests in energy-related master limited partnerships.
| Issuer: | Kayne Anderson MLP Investment Co.
|
| Issue: | Series F mandatory redeemable preferred shares
|
| Amount: | $110 million
|
| Shares: | 4.4 million
|
| Greenshoe: | $15 million
|
| Mandatory redemption date: | April 15, 2020
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc. and UBS Investment Bank
|
| Lead manager: | RBC Capital Markets, LLC
|
| Dividends: | 3.5%, payable monthly
|
| Price: | $25
|
| Call option: | At any time beginning in April 2014; prior to that, at 102 if asset coverage is greater than 225% but less than or equal to 235%
|
| Pricing date: | March 26
|
| Settlement date: | April 3
|
| Expected listing: | NYSE: KYNPF
|
| Price talk: | 3.5% to 3.625%
|
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