Kayne Anderson MLP/Midstream Investment Company Provides Unaudited Balance Sheet Information and Announces its Net Asset Valu...
April 02 2020 - 8:45PM
Kayne Anderson MLP/Midstream Investment Company (the “Company”)
(NYSE: KYN) today provided a summary unaudited statement of assets
and liabilities and announced its net asset value and asset
coverage ratios under the Investment Company Act of 1940 (the “1940
Act”) as of March 31, 2020.
As of March 31, 2020, the Company’s net assets were $556
million, and its net asset value per share was $4.39. As of the
same date, the Company had $560 million of cash on its balance
sheet, including cash it has received since month end for
securities it has recently sold. It is the Company’s intention to
comply with all applicable 1940 Act leverage tests as well as the
covenants on its debt agreements and of its preferred stock. The
Company plans to prudently use its cash balance to reduce leverage
levels over the next month in a way that minimizes prepayment
penalties and maximizes shareholder value.
As of March 31, 2020, the Company’s asset coverage ratio under
the 1940 Act with respect to senior securities representing
indebtedness (the “’40 Act Debt Test”) was 269% and the Company’s
asset coverage ratio under the 1940 Act with respect to total
leverage (the “’40 Act Leverage Test”) was 164%. The Company is
still in the process of determining what portion of its cash
balance will be used to redeem debt and what portion will be used
to redeem preferred stock. For illustrative purposes, assuming the
Company uses $531 million to repay all of its outstanding
indebtedness and the remainder of its cash to repay preferred
stock, the pro forma coverage ratio for the ’40 Act Leverage Test
is estimated to be 267%.
Kayne
Anderson MLP/Midstream Investment Company |
Statement of
Assets and Liabilities |
March 31,
2020 |
(Unaudited) |
|
|
(in millions) |
Investments |
|
$ |
824.9 |
|
Cash and
cash equivalents |
|
|
500.0 |
|
Receivable
for securities sold |
|
|
59.9 |
|
Deposits |
|
|
0.2 |
|
Accrued
income |
|
|
0.1 |
|
Deferred tax
asset, net |
|
|
47.6 |
|
Other
assets |
|
|
1.3 |
|
Total assets |
|
|
1,434.0 |
|
|
|
|
Notes |
|
|
531.0 |
|
Unamortized
notes issuance costs |
|
|
(1.3 |
) |
Preferred
stock |
|
|
342.0 |
|
Unamortized
preferred stock issuance costs |
|
|
(2.9 |
) |
Total leverage |
|
|
868.8 |
|
Total liabilities |
|
|
9.7 |
|
|
|
|
Net
assets |
|
$ |
555.5 |
|
|
|
|
Long-term investments were comprised of Midstream MLP (80%),
Midstream Company (19%) and Other (1%).
The Company’s ten largest holdings by issuer at March 31, 2020
were:
|
|
|
Amount(in millions) |
|
Percent ofLong-TermInvestments* |
1. |
Enterprise Products Partners L.P. (Midstream MLP) |
|
$129.6 |
|
15.7 |
% |
2. |
MPLX LP (Midstream MLP)** |
|
|
111.3 |
|
13.5 |
% |
3. |
The Williams Companies, Inc. (Midstream Company) |
|
|
82.0 |
|
9.9 |
% |
4. |
Energy Transfer LP (Midstream MLP) |
|
|
77.7 |
|
9.4 |
% |
5. |
Magellan Midstream Partners, L.P. (Midstream MLP) |
|
|
60.8 |
|
7.4 |
% |
6. |
Shell Midstream Partners, L.P. (Midstream MLP) |
|
|
55.9 |
|
6.8 |
% |
7. |
Phillips 66 Partners LP (Midstream MLP) |
|
|
46.5 |
|
5.6 |
% |
8. |
ONEOK, Inc. (Midstream Company) |
|
|
42.8 |
|
5.2 |
% |
9. |
EQM Midstream Partners, LP (Midstream MLP) |
|
|
42.3 |
|
5.1 |
% |
10. |
Plains All American Pipeline, L.P. (Midstream MLP) |
|
|
40.3 |
|
4.9 |
% |
|
|
|
|
|
|
|
____________
* Excludes cash.
** Includes common units and preferred units.
Portfolio holdings are subject to change without notice. The
mention of specific securities is not a recommendation or
solicitation for any person to buy, sell or hold any particular
security. You can obtain a complete listing of holdings by viewing
the Company’s most recent quarterly or annual report.
Kayne Anderson MLP/Midstream Investment Company is a
non-diversified, closed-end management investment company
registered under the Investment Company Act of 1940, as amended,
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 partnerships and
their affiliates (“MLPs”), and in other companies that, as their
principal business, operate assets used in the gathering,
transporting, processing, storing, refining, distributing, mining
or marketing of natural gas, natural gas liquids, crude oil,
refined petroleum products or coal (collectively with midstream
MLPs, “Midstream Energy Companies”).
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of any securities
in any jurisdiction in which such offer or sale is not permitted.
Past performance is not a guarantee of future results. Current
performance may be lower or higher than that shown based on market
fluctuations from the end of the reported period.
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, available at
www.sec.gov. 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 objective will be attained.
Contact:
KA Fund Advisors, LLC Investor Relations 877-657-3863
cef@kaynecapital.com www.kaynefunds.com
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