HOUSTON, TX -- 10/10/08 --
Kayne Anderson MLP Investment Company (the
"Company") (NYSE: KYN) announced today that it intends to satisfy the
provisions under the Company's Dividend/Distribution Reinvestment Plan by
issuing shares at $18.05 per share, or 95% of the closing market price on
October 9, 2008, which was in excess of its net asset value per share of
$14.63 on such date. The Company's closing market price per share on such
date was $19.00.
As of close of business on October 9, 2008 and after redemption of the $80
million of senior notes announced yesterday, the Company's asset coverage
ratio under the Investment Company Act of 1940 ("1940 Act") with respect to
senior securities representing indebtedness was 295%, and its asset
coverage ratio under the 1940 Act with respect to total leverage (debt and
preferred stock) was 246%. The 1940 Act requires investment companies to
have minimum debt and total leverage coverage ratios of 300% and 200%,
respectively, at the time of a common stock dividend declaration. The
Company's borrowing agreements contain similar restrictions and require
that it have a minimum coverage ratio of 300% as of the last day of each
month.
The Company continues to work diligently to maintain the required asset
coverage ratios for the purposes of both the 1940 Act and the covenants of
its senior notes. The Company currently has approximately $32 million of
cash and expected cash from the settlement of trades over the next several
days. If these proceeds were used to repay debt, our asset coverage ratio
with respect to senior securities representing indebtedness would be 313%.
The Company has $370 million in senior notes, $75 million in auction rate
preferred stock, and no borrowings under its revolving credit facility.
Kayne Anderson MLP Investment Company is a non-diversified, closed-end
management investment company registered under the Investment Company Act
of 1940, whose common stock is traded on the NYSE. The Company's investment
objective is to obtain a high after-tax total return by investing at least
85% of its total assets in energy-related master limited partnerships and
their affiliates, and in other companies that, as their principal business,
operate assets used in the gathering, transporting, processing, storing,
refining, distributing, mining or marketing natural gas, natural gas
liquids (including propane), crude oil, refined petroleum products or coal.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release
contains "forward-looking statements" as defined under the U.S. federal
securities laws. Generally, the words "believe," "expect," "intend,"
"estimate," "anticipate," "project," "will" and similar expressions
identify forward-looking statements, which generally are not historical in
nature. Forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ from the Company's
historical experience and its present expectations or projections indicated
in any forward-looking statements. These risks include, but are not limited
to, changes in economic and political conditions; regulatory and legal
changes; MLP industry risk; leverage risk; valuation risk; interest rate
risk; tax risk; and other risks discussed in the Company's filings with the
SEC. You should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. The Company undertakes no
obligation to publicly update or revise any forward-looking statements made
herein. There is no assurance that the Company's investment objectives will
be attained.
CONTACT:
KA Fund Advisors, LLC
Monique Vo
877-657-3863
http://www.kaynefunds.com
