Kayne Anderson to sell series G mandatorily redeemable monthly-paying preferreds

By Stephanie N. Rotondo

Phoenix, Sept. 9 - Kayne Anderson MLP Investment Co. is planning an offering of series G mandatorily redeemable preferred shares, according to a prospectus filed with the Securities and Exchange Commission on Monday.

The $25-par shares must be redeemed on Oct. 1, 2021.

BofA Merrill Lynch and Morgan Stanley & Co. LLC are the joint bookrunning managers.

Dividends are payable monthly beginning Nov. 1. The shares must also be called if the company fails to maintain asset coverage of 225% or if assets in the company's portfolio fall below the basic maintenance amount required by rating agencies on its series A mandatorily redeemable preferreds.

Should either of those situations occur, the redemption price is 102% of par plus accrued and unpaid dividends.

The Houston-based investment firm has applied to list the preferreds on the New York Stock Exchange under the ticker symbol "KYNPG."

Proceeds will be used for investments related to the company's investment strategy, to repay debt and for general corporate purposes.

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