HOUSTON, TX -- 10/15/08 --
Kayne Anderson MLP Investment Company (the
"Company") (NYSE: KYN) announced today that it entered into additional
interest rate swaps with notional value of $75 million at an average fixed
swap rate of 3.25% with a tenor of 2.7 years. As a result of these
transactions, the Company now has a total of $260 million notional value of
interest rate swaps with an average tenor of 2.4 years and an average fixed
rate of 3.53%. With the addition of the new interest rate swaps, the
Company has substantially eliminated its exposure to floating interest
rates.
As of close of business on October 14, 2008, the Company's asset coverage
ratio under the Investment Company Act of 1940 ("1940 Act") with respect to
senior securities representing indebtedness was 334%, and its asset
coverage ratio under the 1940 Act with respect to total leverage (debt and
preferred stock) was 278%. 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 it
to have a minimum coverage ratio of 300% as of the last day of each month.
Commencing this week, the Company intends to announce its 1940 Act coverage
ratios every Friday afternoon based on Thursday's closing prices. These
ratios will be published on our website at
www.kaynefunds.com/Kyn1940Act.htm. The Company has been announcing NAV on
a weekly basis since August 2007.
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 356%. "We continue
to work hard in this market to achieve a substantial cushion in meeting our
1940 Act requirements and covenants. We think these ratios demonstrate
that we continue to make progress in this regard," said Kevin McCarthy,
Chairman and CEO of the Company.
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
