nvq
 

 
 
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.
KA Fund Advisors, LLC, 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 30, 2007
Date of reporting period:       August 31, 2007
 
 

 

 

Item 1:   Schedule of Investments
KAYNE ANDERSON MLP INVESTMENT COMPANY
SCHEDULE OF INVESTMENTS
AUGUST 31, 2007
(amounts in 000’s)
(UNAUDITED)
                 
    No. of        
Description   Shares/Units     Value  
Long-Term Investments - 170.0%
                
Equity Investments(a) - 170.0%
                
Midstream MLP(b) - 132.1%
                
Atlas Pipeline Partners, L.P.
     417     $ 19,363  
Boardwalk Pipeline Partners, LP
     522       17,320  
Buckeye Partners, L.P.
     369       18,117  
Copano Energy, L.L.C.
     3,923       152,963  
Crosstex Energy, L.P.
     2,614       92,546  
Crosstex Energy, L.P. — Class C Senior Subordinated Units(c)(d)
     356       11,948  
DCP Midstream Partners, LP
     142       6,444  
Duncan Energy Partners L.P.
     164       3,923  
Eagle Rock Energy Partners L.P.
     113       2,485  
Enbridge Energy Management, L.L.C.(e)
     662       34,475  
Enbridge Energy Partners, L.P.
     1,487       75,802  
Energy Transfer Partners, L.P.
     4,262       221,818  
Enterprise GP Holdings L.P. — Unregistered(c)
     1,342       50,033  
Enterprise Products Partners L.P.(f)
     5,463       161,204  
Genesis Energy, L.P.
     59       1,739  
Global Partners LP
     1,464       46,755  
Hiland Partners, LP
     162       8,096  
Holly Energy Partners, L.P.
     226       10,301  
Kinder Morgan Management, LLC(e)
     2,897       139,446  
Magellan Midstream Partners, L.P.
     3,871       166,438  
MarkWest Energy Partners, L.P.
     2,183       69,590  
Martin Midstream Partners L.P.
     295       11,319  
NuStar L.P.
     550       34,249  
ONEOK Partners, L.P.
     892       57,108  
Plains All American Pipeline, L.P.
     3,112       179,082  
Regency Energy Partners LP
     1,949       62,376  
Semgroup Energy Partners LP(d)
     211       6,335  
Spectra Energy Partners LP(d)
     280       7,404  
Sunoco Logistics Partners L.P.
     144       7,719  
Targa Resources Partners LP
     434       13,029  
TC PipeLines, LP
     1,260       46,832  
TEPPCO Partners, L.P.
     677       27,174  
Williams Partners L.P.
     473       21,079  
 
              
 
             1,784,512  
 
              
 
                
Propane MLP - 8.6%
                
AmeriGas Partners, L.P.
     128       4,475  
Ferrellgas Partners, L.P.
     877       19,860  
Inergy, L.P.
     2,839       92,479  
 
              
 
             116,814  
 
              
 
                
Shipping MLP - 2.9%
                
Capital Product Partners LP
     121       3,497  
K-Sea Transportation Partners L.P.
     249       9,690  
Teekay LNG Partners L.P.
     383       13,383  
Teekay Offshore Partners L.P.
     265       7,820  
U.S. Shipping Partners L.P.
     245       4,728  
 
              
 
             39,118  
 
              
 
                
Coal MLP - 4.7%
                
Clearwater Natural Resources, LP — Unregistered(c)(g)(h)
     3,889       43,945  
Natural Resource Partners L.P.- Subordinated Units
     311       10,275  
Penn Virginia Resource Partners, L.P.
     319       8,870  
 
              
 
             63,090  
 
              

 

 

KAYNE ANDERSON MLP INVESTMENT COMPANY
SCHEDULE OF INVESTMENTS — (CONTINUED)
AUGUST 31, 2007
(amounts in 000’s, except option contracts written)
(UNAUDITED)
    No. of        
Description   Shares/Units     Value  
Upstream MLP(b) - 10.6%
                
Atlas Energy Resources, LLC
     565     $ 18,271  
Atlas Energy Resources, LLC — Unregistered(c)
     398       11,536  
Atlas Energy Resources, LLC — Class D, Unregistered(c)
     910       25,812  
BreitBurn Energy Partners L.P.
     64       2,145  
BreitBurn Energy Partners L.P. — Unregistered(c)
     1,426       45,515  
Constellation Energy Partners LLC
     198       8,312  
Constellation Energy Partners LLC — Unregistered(c)
     247       9,802  
Constellation Energy Partners LLC — Class F, Unregistered(c)
     312       12,182  
Dorchester Minerals, L.P.
     119       2,567  
Legacy Reserves LP
     290       6,733  
 
              
 
             142,875  
 
              
 
MLP Affiliates - 6.2%
                
Atlas Pipeline Holdings, L.P.
     79       3,225  
Buckeye GP Holdings L.P.
     206       6,468  
Crosstex Energy, Inc.
     156       5,108  
Energy Transfer Equity, L.P.
     196       7,192  
Energy Transfer Equity, L.P. — Unregistered(c)
     365       13,408  
Hiland Holdings GP, LP
     153       4,614  
Magellan Midstream Holdings, L.P.
     1,221       34,572  
MarkWest Hydrocarbon, Inc.(f)
     186       9,355  
 
              
 
             83,942  
 
              
 
Other MLP - 4.1%
                
Calumet Specialty Products Partners, L.P.
     644       31,317  
Exterran Partners LP
     353       12,119  
Exterran Partners LP — Unregistered(c)
     378       12,696  
 
              
 
             56,132  
 
              
 
Other - 0.8%
                
Arlington Tankers Ltd.
     70       1,736  
Double Hull Tankers, Inc.
     182       2,805  
Nordic American Tanker Shipping Limited
     82       3,027  
Omega Navigation Enterprises, Inc.
     185       3,655  
 
              
 
             11,223  
 
              
Total Long-Term Investments (Cost – $1,577,144)
             2,297,706  
 
              
    Interest     Maturity          
    Rate     Date          
Short-Term Investment - 0.9%
                        
Repurchase Agreement - 0.9%
                        
Bear, Stearns & Co. Inc. (Agreement dated 8/31/07
to be repurchased at $11,760), collateralized by
$12,096 in U.S. Treasury Notes (Cost $11,753)
     5.150 %     9/04/07       11,753  
 
                      
Total Investments - 170.9% (Cost – $1,588,897)
                     2,309,459  
 
                      
    No. of          
    Contracts          
Liabilities
                
Option Contracts Written(h)
                
Midstream MLP
                
Enterprise Products Partners L.P., call option
expiring 10/20/07 @ $30.00 (Premiums received $178)
     1,840       (202 )
Auction Rate Senior Notes
             (505,000 )
Deferred Taxes
             (261,825 )
Revolving Credit Line
             (119,000 )
Other Liabilities
             (10,890 )
Unrealized Depreciation on Interest Rate Swap Contracts
             (1,710 )
 
              
Total Liabilities
             (898,627 )
 
              
Unrealized Appreciation on Interest Rate Swap Contracts
             2,246  
Income Tax Receivable
             2,459  
Other Assets
             10,726  
 
              
Total Liabilities in Excess of Other Assets
             (883,196 )
Preferred Stock at Redemption Value
             (75,000 )
 
              
Net Assets Applicable to Common Stockholders
           $ 1,351,263  
 
              

 

 

KAYNE ANDERSON MLP INVESTMENT COMPANY
SCHEDULE OF INVESTMENTS — (CONCLUDED)
AUGUST 31, 2007
(amounts in 000’s)
(UNAUDITED)
 
(a)   Unless otherwise noted, equity investments are common units/common shares.
 
(b)   Includes Limited Liability Companies.
 
(c)   Fair valued and restricted security.
 
(d)   Security is currently not paying cash distributions but is expected to pay cash distributions or convert to securities which pay cash distributions within the next 12 months.
 
(e)   Distributions are paid in-kind.
 
(f)   Security or a portion thereof is segregated as collateral on option contracts written or interest rate swap contracts.
 
(g)   Clearwater Natural Resources, LP is a privately-held MLP that the Company believes is a controlled affiliate.
 
(h)   Security is non-income producing.
 
    From time to time, certain of the Company’s investments may be restricted as to resale, particularly private investments that are not registered under the Securities Act of 1933 and cannot, as a result, be offered for public sale for a non-exempt transaction without first being registered. Such restricted investments are valued in accordance with the procedures established by the Board of Directors. The table below shows the number of units held, the acquisition date, aggregate cost, and fair value as of August 31, 2007, value per unit of such security, percent of net assets applicable to common stockholders and percent of total assets which the security comprises:
 
                                                                     
                                      Value
 		    Percent
 		    Percent
 		 
        Type of
    Number of
 		    Acquisition
 		          Fair
 		    Per
 		    of Net
 		    of Total
 		 
Investment   Security   Restriction     Units     Date     Cost     Value     Unit     Assets(1)     Assets  
 
Atlas Energy Resources, LLC
  Common Units   (1)(2)       398       6/29/07     $ 10,143     $ 11,536     $ 29.00       0.9 %     0.5 %
Atlas Energy Resources, LLC
  Class D Common Units   (1)(2)       910       6/29/07       22,557       25,812       28.35       1.9       1.1  
BreitBurn Energy Partners L.P.
  Common Units   (1)       1,212       5/24/07       38,333       38,608       31.85       2.9       1.7  
BreitBurn Energy Partners L.P. 
  Common Units   (1)       214       5/25/07       6,565       6,907       32.21       0.5       0.3  
Clearwater Natural Resources, L.P. 
  Common Units   (3)       3,889       (4)       70,255       43,945       11.30       3.2       1.9  
Constellation Energy Partners LLC
  Common Units   (1)(2)       247       7/25/07       8,705       9,802       39.69       0.7       0.4  
Constellation Energy Partners LLC
  Class F Common
Units 		  (1)(2)       312       7/25/07       10,756       12,182       39.00       0.9       0.5  
Crosstex Energy, L.P. 
  Class C Senior
Subordinated Units 		  (5)       356       6/29/06       10,022       11,948       33.52       0.9       0.5  
Energy Transfer Equity, L.P. 
  Common Units   (1)       365       11/27/06       9,898       13,408       36.75       1.0       0.6  
Enterprise GP Holdings L.P.
  Common Units   (1)(2)       1,342       7/17/07       49,541       50,033       37.27       3.7       2.2  
Exterran Partners LP
  Common Units   (1)(2)       378       7/9/07       13,006       12,696       33.61       0.9       0.5  
                                                                     
                                $ 249,781     $ 236,877               17.5 %     10.2 %
                                                                     
 
  (1)   Public security that is unregistered.
 
  (2)   Security is subject to lock-up agreement.
 
  (3)   Private security.
 
  (4)   The Company purchased common units on 8/1/05 and 10/2/06.
 
  (5)   No public market exists for the Class C Senior Subordinated Units. These units convert to exchange listed Common Units on February 16, 2008.
At August 31, 2007, the cost basis of investments for federal income tax purposes was $1,540,437. At August 31, 2007, gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:
         
Gross unrealized appreciation
   $ 796,675  
Gross unrealized depreciation
     (27,653 )
 
      
Net unrealized appreciation
   $ 769,022  
 
      
The identified cost basis for federal tax purposes is estimated based on information available from the Company’s portfolio companies. In some cases, this information is very limited. Accordingly, the actual cost basis may prove higher or lower than the estimated cost basis included in this footnote.
Securities valuation policies and other investment related disclosures are hereby incorporated by reference to the Company’s semi-annual report previously filed with the Securities and Exchange Commission on Form N-CSR on August 3, 2007, with a file number 811-21593.
Other information regarding the Company is available in the Company’s most recent semi-annual report. This information is also available on the Company’s website at http://www.kaynefunds.com; or on the website of the Securities and Exchange Commission, http://www.sec.gov.

 

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.

 

 

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:   Chairman, President and Chief Executive Officer    
 
  Date:   October 30, 2007    
     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:   Chairman, President and Chief Executive Officer    
 
  Date:   October 30, 2007    
 
            
    /s/ Terry A. Hart    
         
 
  Name:   Terry A. Hart    
 
  Title:   Chief Financial Officer and Treasurer    
 
  Date:   October 30, 2007