DCP Midstream LP to Sell Fixed-to-Floating Preferred

Giant midstream energy master limited partnership DCP Midstream (NYSE:DCP) is selling a new fixed-to-floating rate preferred.  This issue will generate a K-1 at tax time (or after tax time as my experience shows they are almost always late).

The issue will have a early redemption period starting on 6/15/2023.

The issue will have a permanent ticker of DCP-B.  The OTC grey market ticker has not yet been announced yet.

No details as to size or pricing have been announced yet, but as usual the floating rate will key off the 3 month Libor rate beginning in 2023.

DCP currently has no $25 baby bonds or preferred issues trading but they have a 7.375% $1000 issue.

We have an interest in this issue if the pricing is right.  DCP is a $8 billion MLP and is well managed.

The preliminary prospectus is here.


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