Kayne Anderson MLP Prepares for Redemption

Closed end fund, Kayne Anderson MLP (KYN) is preparing for redemption of their 3.50% monthly paying term preferred shares.

They have announced the private placement of mandatory redemption preferreds in amounts that are adequate to redeem the KYN-F shares.

The KYN-F shares must be redeemed on 4/15/2020 (or before). Shares pay a 7 cent/month dividend and currently are trading at $25.12.

The company press release on the private placement can be found here.

This is NOT a notice of redemption of KYN-F.

Disclosure–I own a large position in KYN-F.

6 thoughts on “Kayne Anderson MLP Prepares for Redemption”

    1. Redemption terms announced in Jan. 2020 seem to short-change holders … seems no dividend for the period from Jan. 16 to Feb. 1, with only dividends being paid for period through Jan. 15 and for Feb. 2 through 13.

      1. TimN, the regular dividend paid on Feb 3 covers the period from Nov 3 – Feb 3. the XD of Jan 15 does not affect this amount.

        Then on Feb 13, we get the Redemption value Plus the dividends accrued from 2/3 – 2/13.

        From the official announcement:

        HOUSTON, Jan. 14, 2020 (GLOBE NEWSWIRE) — Kayne Anderson MLP/Midstream Investment Company (NYSE: KYN) (the “Company”) announced today that it will redeem all 5,000,000 shares of its 3.50% Series F Mandatory Redeemable Preferred Shares (the “Series F MRP Shares”), with an aggregate liquidation preference of $125 million, on February 13, 2020.

        Holders of record as of January 15, 2020, of the Series F MRP Shares, will receive the regular monthly dividend payment amount on February 3, 2020. On February 13, 2020, Series F MRP holders will receive the liquidation preference per share of $25.00, plus accumulated but unpaid dividends for the first twelve days of February. The paying agent is American Stock Transfer & Trust Company, which is the Company’s transfer agent.

        1. Sorry, it is late, and I’m tired. A few errors in the comment above, dividend accrual periods are monthly, not quarterly.

          Just ignore the above comment, I’m off to bed, can’t think straight.

          1. inspbudget–we all understand–anytime after 8 pm my brain shuts down.

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