Fitch Rates Kayne Anderson MLP Investment Company Senior Notes Series M & N 'AAA'

• Press Release
• Source: Fitch Ratings
• On 10:26 am EST, Thursday November 5, 2009

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned an 'AAA' rating to the following securities issued by Kayne Anderson MLP Investment Company (NYSE: KYN - News), a closed-end, non-diversified investment management company advised by KA Fund Advisors, LLC:

-- $60,000,000 of 4.56% Series M senior unsecured notes due Nov. 4, 2014;
-- $50,000,000 of floating rate Series N senior unsecured notes due Nov. 4, 2014.

Fitch also takes the following rating actions on other outstanding senior securities issued by the same fund:

-- $75,000,000 of 5.645% rate Series G senior unsecured notes due in June, 2011 - affirmed at 'AAA';
-- $60,000,000 of 5.847% rate Series I senior unsecured notes due in June, 2012 - affirmed at 'AAA';
-- $125,000,000 of 5.991% rate Series K senior unsecured notes due in June, 2013 - affirmed at 'AAA';
-- Auction rate preferred shares Series D - affirmed at 'AA'
-- $20,000,000 of floating rate Series H senior unsecured notes due in June, 2011 - Paid In Full;
-- $24,000,000 of floating rate Series J senior unsecured notes due in June, 2012 - Paid In Full;

The ratings are based on sufficient asset coverage provided by the fund's underlying portfolio, redemption/de-leveraging provisions consistent with Fitch's updated rating criteria and the capabilities of KA Fund Advisors, LLC as investment advisor. The proceeds from the sale of notes have been used to pay down a significant portion the outstanding balance of the bank borrowing facility and redeem the previously outstanding senior notes Series H and J. The fund's total debt outstanding or leverage will not increase as a result of the note issuance.

At the time of the note issuance, the fund's pro forma asset coverage ratio, as calculated in accordance with the Investment Company Act of 1940 (1940 Act), was in excess of 300%, which is the minimum asset coverage required by the 1940 Act. The terms of note purchase agreement stipulate that the fund maintain asset coverage under the 1940 Act of no less than 300% of the outstanding notes and no less than 200% of the outstanding auction rate preferred stock.

Also, at the time of issuance, the fund's pro forma asset coverage ratio, calculated in accordance with the overcollateralization test as per Fitch rating criteria was in excess of 100%, which is the minimum asset coverage deemed consistent with an 'AAA' rating. Fitch's rating criteria report titled 'Closed-End Fund Debt and Preferred Stock Rating Criteria', published on Aug. 17, 2009, is available at www.fitchratings.com under the headers Criteria / Financial Institutions / Fund & Asset Manager Ratings.

Kayne Anderson MLP Investment Company invests principally in equity securities of energy-related master limited partnerships (MLPs) which are publicly traded limited partnerships owning domestic infrastructure assets that are used in the gathering, processing, transportation, storage, refining and distribution of energy-related commodities. The fund's objective is to obtain a high level of after tax total returns for its shareholders.

KA Fund Advisors, LLC is the fund's investment adviser, responsible for implementing and administering the fund's investment strategy. It is a subsidiary of Kayne Anderson Capital Advisors, L.P. (Kayne Anderson), a Securities and Exchange Commission-registered investment adviser. As of Aug. 31, 2009, Kayne Anderson and its affiliates managed approximately $7.3 billion, including approximately $5.7 billion in MLPs and other midstream energy companies. Kayne Anderson has invested in MLPs and other midstream energy companies since 1998.

Additional information is available at www.fitchratings.com.

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Fitch Ratings, New York
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com
Viktoria Baklanova, CFA, +1-212-908-9162
Nathan Flanders, +1-212-908-0827