By Stephanie N. Rotondo
Phoenix, Sept. 9 - Kayne Anderson MLP Investment Co. priced $50 million of 4.6% series G mandatorily redeemable preferred shares, according to a market source on Monday.
The $25-par preferreds 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 preferreds 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 first call date is Oct. 1, 2014.
The Houston-based investment firm will use the proceeds for investments related to the company's investment strategy, to repay debt and for general corporate purposes.
| Issuer: | Kayne Anderson MLP Investment Co.
|
| Securities: | Series G mandatorily redeemable preferred shares
|
| Amount: | $50 million
|
| Mandatory redemption: | Oct. 1, 2021
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC
|
| Dividend: | 4.6%
|
| Price: | Par of $25.00
|
| Yield: | 4.6%
|
| Call options: | Mandatory on Oct. 1, 2021; on or after Oct. 1, 2014 if the company fails to maintain asset coverage or basic maintenance ratios at 102% of par plus accrued and unpaid dividends
|
| Pricing date: | Sept. 9
|
| Settlement date: | Sept. 16
|
| Expected listing: | NYSE: KYNPG
|
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