nvq
Table of Contents

 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21593
KAYNE ANDERSON MLP INVESTMENT COMPANY
 
(Exact name of registrant as specified in charter)
     
1800 Avenue of the Stars, Second Floor, Los Angeles, California   90067
     
(Address of principal executive offices)   (Zip code)
David Shladovsky, Esq.
Kayne Anderson Capital Advisors, L.P., 1800 Avenue of the Stars, Second Floor, Los Angeles, California 90067
 
(Name and address of agent for service)
Registrant’s telephone number, including area code: (310) 556-2721
Date of fiscal year end: November 30th
Date of reporting period: February 28, 2006
 
 

 

TABLE OF CONTENTS

Item 1: Schedule of Investments -
Item 2: Controls and Procedures
Item 3: Exhibits
SIGNATURES
Exhibit 99

Table of Contents

Item 1: Schedule of Investments –
KAYNE ANDERSON MLP INVESTMENT COMPANY
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2006
(amounts in 000’s)
(UNAUDITED)
                 
    No. of        
    Shares/Units     Value  
Description
                
 
                
Long-Term Investments -142.8%
                
Equity Investments (a) - 142.8%
                
Pipeline MLP (b) - 116.1%
                
Atlas Pipeline Partners, L.P.
     365     $ 15,295  
Boardwalk Pipeline Partners, LP
     354       6,893  
Buckeye Partners, L.P.
     74       3,266  
Copano Energy, L.L.C.
     2,222       90,295  
Crosstex Energy, L.P.
     2,619       96,914  
DCP Midstream Partners, LP
     69       1,892  
Enbridge Energy Management, L.L.C. (c)
     396       18,247  
Enbridge Energy Partners, L.P.
     1,980       88,524  
Energy Transfer Partners, L.P.
     4,444       158,756  
Enterprise Products Partners L.P.
     5,614       136,307  
Genesis Energy, L.P.
     38       445  
Global Partners LP
     369       7,764  
Hiland Partners, LP
     48       1,980  
Holly Energy Partners, L.P.
     220       8,840  
Kinder Morgan Management, LLC (c)
     2,719       118,908  
Magellan Midstream Partners, L.P.
     3,964       124,822  
MarkWest Energy Partners, L.P.
     193       8,690  
MarkWest Energy Partners, L.P. — Unregistered (d)
     679       29,564  
Martin Midstream Partners L.P.
     180       5,378  
Northern Border Partners, L.P.
     753       36,234  
Pacific Energy Partners, L.P.
     437       13,512  
Plains All American Pipeline, L.P.
     1,399       62,689  
Regency Energy Partners LP (e)
     550       11,032  
Sunoco Logistics Partners L.P.
     37       1,582  
TC PipeLines, LP
     206       7,163  
TEPPCO Partners, L.P.
     503       18,306  
TransMontaigne Partners L.P.
     52       1,318  
Valero L.P.
     639       33,235  
 
              
 
             1,107,851  
 
              
 
                
Propane MLP - 12.7%
                
Ferrellgas Partners, L.P.
     1,770       39,584  
Inergy, L.P.
     2,969       81,168  
 
              
 
             120,752  
 
              
 
                
Shipping MLP - 2.2%
                
K-Sea Transportation Partners L.P. (f)
     109       3,769  
Teekay LNG Partners L.P.
     259       7,871  
U.S. Shipping Partners L.P.
     403       9,254  
 
              
 
             20,894  
 
              
 
                
Coal MLP - 1.8%
                
Natural Resource Partners L.P.
     171       8,812  
Penn Virginia Resource Partners, L.P.
     137       7,908  
 
              
 
             16,720  
 
              
 
                
MLP Affiliates - 2.9%
                
Atlas America, Inc. (g)
     32       2,177  
Crosstex Energy, Inc.
     58       4,603  
Energy Transfer Equity, L.P. (e)
     249       5,484  
Magellan Midstream Holdings, L.P. (e)
     293       6,824  
MarkWest Hydrocarbon, Inc. (f)
     275       6,287  
TransMontaigne Inc. (g)
     318       2,400  
 
              
 
             27,775  
 
              

Table of Contents

KAYNE ANDERSON MLP INVESTMENT COMPANY
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2006
(amounts in 000’s)
(UNAUDITED)
                                 
                    No. of        
                    Shares/Units     Value  
Description
                                
Other - 7.1%
                                
Arlington Tankers Ltd.
                     71     $ 1,625  
Calumet Specialty Products Partners, L.P. (e)
                     520       12,333  
Clearwater Natural Resources, LP — Unregistered (d)(h)
                     2,650       53,000  
DryShips Inc.
                     74       810  
 
                              
 
                             67,768  
 
                              
Total Equity Investments (Cost $1,171,189)
                             1,361,760  
 
                              
                                 
    Interest     Maturity     Principal          
    Rate     Date     Amount          
Fixed Income Investment - 0.0%
                                
MLP Affiliate - 0.0%
                                
TransMontaigne Inc. (Cost $504)
     9.125 %     06/01/10     $ 500       514  
 
                              
Total Long-Term Investments (Cost $1,171,693)
                             1,362,274  
 
                              
 
                                
Short-Term Investment - 5.8%
                                
Repurchase Agreement - 5.8%
                                
Bear, Stearns & Co. Inc. (Agreement dated 2/28/06 to be repurchased at $55,047), collateralized by $56,637 in U.S. Government and Agency Securities (Cost $55,040)
     4.500       03/01/06               55,040  
 
                              
 
                                
Total Investments - 148.6% (Cost $1,226,733)
                             1,417,314  
 
                              
                 
    No. of          
    Units          
Liabilities
                
Securities Sold Short
                
Coal MLP
                
Alliance Resource Partners, L.P.
     57       (2,111 )
 
              
Propane MLP
                
AmeriGas Partners, L.P.
     2       (65 )
 
              
Total Securities Sold Short (cash proceeds received $2,267)
             (2,176 )
 
              
Auction Rate Senior Notes
             (320,000 )
Deferred Taxes
             (76,175 )
Current Taxes
             (905 )
Other Liabilities
             (4,744 )
 
              
Total Liabilities
             (404,000 )
 
              
Unrealized Appreciation on Interest Rate Swap Contracts
             4,577  
Other Assets
             11,047  
 
              
Total Liabilities in Excess of Other Assets
             (388,376 )
Preferred Stock at Redemption Value
             (75,000 )
 
              
Net Assets Applicable to Common Stockholders
           $ 953,938  
 
              
 
(a)   Unless otherwise noted, equity investments are common units/common shares.
 
(b)   Includes Limited Liability Companies.
 
(c)   Distributions are paid in-kind.
 
(d)   Fair valued securities, restricted from public sale. The Company negotiates certain aspects of the method and timing of its rights to dispose of these investments, including registration rights and related costs.
 
(e)   Security is currently non-income producing; expected to pay distributions within the next 12 months.
 
(f)   Security or a portion thereof is segregated as collateral on securities sold short.
 
(g)   Security is non-income producing.
 
(h)   Clearwater Natural Resources, LP is a privately-held company.

 

Table of Contents

KAYNE ANDERSON MLP INVESTMENT COMPANY
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2006
(amounts in 000’s)
(UNAUDITED)
Certain of the Company’s investments are restricted as to resale and are valued as determined in accordance with procedures established by the Board of Directors. The table below shows the number of units held, the acquisition dates, aggregate costs, fair value as of February 28, 2006, value per unit of such securities, percent of net assets applicable to common stockholders and percent of total assets which the securities comprise.
                                                                 
                                                    Percent     Percent  
            Number of     Acquisition             Fair     Value Per     of Net     of Total  
Partnership   Security     Units     Date     Cost     Value     Unit     Assets (1)     Assets  
Clearwater Natural Resources, L.P.
   Common Units (2)     2,650       08/01/05     $ 53,000     $ 53,000     $ 20.00       5.6 %     3.7 %
MarkWest Energy Partners, L.P.
   Common Units (2)     679       11/09/05       30,000       29,564       43.57       3.1       2.1  
 
                                                        
 
                           $ 83,000     $ 82,564               8.7 %     5.8 %
 
                                                        
 
(1)   Applicable to common stockholders.
 
(2)   Unregistered security.
At February 28, 2006, the identified cost basis of investments for Federal income tax purposes was $1,224,014. At February 28, 2006, gross unrealized appreciation and depreciation of investments for Federal income tax purposes were as follows:
         
Gross unrealized appreciation
   $ 197,762  
Gross unrealized depreciation
     (4,462 )
 
      
Net unrealized appreciation
   $ 193,300  
 
      
Securities valuation policies and other investment related disclosures are hereby incorporated by reference to the Company’s annual report previously filed with the Securities and Exchange Commission on Form N-CSR on February 8, 2006, with a file number 811-21593. Other information regarding the Company is available in the Company’s most recent annual report. This information is also available on the Company’s website at http://www.kaynemlp.com; or on the website of the Securities and Exchange Commission, http://www.sec.gov.

 

Table of Contents

Item 2: Controls and Procedures
     (a) As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)), were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities and Exchange Act of 1934.
     (b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3: Exhibits
1.   The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report.

 

Table of Contents

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  KAYNE ANDERSON MLP INVESTMENT COMPANY
 
 
    
 
/s/ Kevin S. McCarthy
 
Name: Kevin S. McCarthy
   
 
Title: Chief Executive Officer
    
 
Date: April 28, 2006
    
     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
 
/s/ Kevin S. McCarthy
    
 
 
Name: Kevin S. McCarthy
   
 
Title: Chief Executive Officer
    
 
Date: April 28, 2006
    
 
 
    
 
/s/ Terry A. Hart
 
Name: Terry A. Hart
   
 
Title: Chief Financial Officer
    
 
Date: April 28, 2006