Kayne Anderson MLP Investment Company Announces Distribution of $0.45 per Share for Q1 2017
03 April 2017 - 10:37PM
Business Wire
Kayne Anderson MLP Investment Company (the “Company”) (NYSE:
KYN) announced today its quarterly distribution of $0.45 per share
for the quarter ended February 28, 2017. The distribution will be
payable on April 21, 2017 to common stockholders of record on April
13, 2017, with an ex-dividend date of April 11, 2017.
Last quarter, the Company guided to a reduction in our
distribution as a result of the trend of MLPs (or GPs) with lower
yields acquiring MLPs with a higher yield and this trend’s impact
on the Company’s net distributable income, or NDI. Since the time
we provided this guidance, two additional transactions have been
announced: Williams Partners reduced its distribution in connection
with its acquisition of the general partner and incentive
distribution rights from its parent and the acquisition of ONEOK
Partners by its parent, ONEOK, Inc. Both transactions will have the
effect of reducing the Company’s NDI. “The Williams and ONEOK
transactions were viewed favorably by the market. Both MLPs are top
10 positions in our portfolio, and their performance was a
significant factor in our 11.5% increase in adjusted NAV during the
first quarter. However, in light of the negative impact of these
transactions on NDI, we are decreasing our distribution by an
amount greater than we had guided to last quarter. The current
distribution level reflects all transactions that have been
announced or are currently anticipated,” said Kevin McCarthy, the
CEO of the Company.
The Company estimates that 100% of its distribution for the
quarter ended February 28, 2017 will be treated as a return of
capital for tax purposes. This estimate is based on the Company’s
anticipated earnings and profits for fiscal 2017 and its
accumulated earnings and profits as of February 28, 2017. The final
determination of the tax character of the distribution will be made
in early 2018 when the Company can determine its actual earnings
and profits for the full year (including gains and losses on the
sale of securities during fiscal 2017) and may differ substantially
from this preliminary information.
###
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 (collectively, “MLPs”), 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.
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KA Fund Advisors, LLCMonique Vo,
877-657-3863http://www.kaynefunds.com
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