Kayne Anderson MLP Investment Company (the “Company,” “we,” “us” or “our”) is a non-diversified, closed-end management investment company. Our investment objective is to obtain a high after-tax total return by investing at least 85% of our total assets in energy-related partnerships and their affiliates (collectively, “master limited partnerships” or “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 MLPs, “Midstream Energy Companies”).
We are offering 4,800,000 shares of our Series E Mandatory Redeemable Preferred Shares (“Series E MRP Shares”) with an aggregate liquidation preference of $120 million in this prospectus supplement. This prospectus supplement, together with the accompanying prospectus dated February 16, 2012 (the “prospectus”), sets forth the information that you should know before investing.
Investors in the Series E MRP Shares will be entitled to receive cash dividends at an annual rate of 4.25% per annum. Dividends on the Series E MRP Shares will be payable on the first business day of each month, beginning on May 1, 2012 and upon the redemption of the Series E MRP Shares. The initial dividend period for the Series E MRP Shares will commence on March 21, 2012 and end on April 30, 2012. Each subsequent dividend period will be a calendar month (or the portion thereof occurring prior to the redemption of such Series E MRP Shares). Dividends with respect to any monthly dividend period will be declared and paid to holders of record of Series E MRP Shares as their names appear on our books and records at the close of business on the 15th day of such monthly dividend period (or if such day is not a business day, the next preceding business day) or, with respect to the initial dividend period, to holders of record of Series E MRP Shares as their names appear on our books and records at the close of business on April 16, 2012.
We are required to redeem the Series E MRP Shares on April 1, 2019. In addition, the Series E MRP Shares are subject to optional and mandatory redemption by us in certain circumstances described in this prospectus supplement.
Application has been made to list the Series E MRP Shares on the New York Stock Exchange (the “NYSE”) under the symbol “KYN Pr E” so that trading on such exchange will begin within 30 days after the date of this prospectus supplement, subject to notice of issuance. We have been advised by the Underwriters that they intend to make a market in the Series E MRP Shares, but they are not obligated to do so and may discontinue market-making at anytime without notice. Consequently, it is anticipated that, prior to the commencement of trading on the NYSE, an investment in Series E MRP Shares may be illiquid.