Nustar Reduces Distribution, Announces Merger and Announces Earnings

Nustar Energy (NS), of which we just purchased debt, has announced a merger with their general partner.  Additionally they reduced their distribution from $1.095/unit to 60 cents/unit.  Lastly they announced fairly soft earnings–a small loss.  Actually earnings are an improvement on earnings from the year ago quarter.

We don’t believe any of these items should have a material affect on the baby bonds we bought yesterday, although there could be a ‘knee jerk’ reaction lower.

We need to study there items closer to see if there is a material affect on our holdings.  We will try to get this done in the next day or so.