Dynagas LNG to Sell Fixed to Floating Preferred

Smaller MLP Dynagas LNG will be selling a new issue of fixed-to-floating rate preferred units.  The company is a shipping company which only owns LNG carriers (6 at the current time).

Of course details are not yet known, but the fixed rate will remain until 2023 (5 years).

Dynagas (NYSE:DNLG) currently has 1 other preferred issue outstanding that carries a coupon of 9%–the issue can be seen here.

The preliminary info on the new units can be seen here.

NOTE that DNLG issues a 1099 instead of a K-1 at tax time–one of the few partnerships which does this.

Thanks to Eugene for the quick heads up on this new issue.

 

26 thoughts on “Dynagas LNG to Sell Fixed to Floating Preferred”

  1. If this was issued by Ameren, I would put every penny of my investment cash into this and close down the investing websites for good.

    1. Grid–I understand the sentiment. I have said more than once that for my risk tolerance I would buy the hell out of CEF preferreds if I could get 7%–then I would collect my moola and go lay on the beach.

      1. Tim, while clearly not rated as high as some of the CEF preferreds, I’ve been buying SRC-A the past week and the yield is pretty close to 7%.

        Also, checking out the rates on Vanguard, it’s now possible to get a two-year CD at a 3% rate. I’ve not seen that in years.

        1. kaptain–I have seen quiet a few decent REIT preferreds getting in the area where a person is tempted (at or near 7%)–but I think it will be January before we MIGHT see the peaking of rates–of course who knows for sure.

    2. I like the numbers on this one, but Moody’s writes about “exposure to Russian entities some of which are part of larger groups that have been affected by US sanctions”. U.S. sanctions on Russia keep growing and growing, and I would not like to bet much capital that they will not expand to hit Dynagas.

      1. Hi Mike D–haven’t looked deep because I won’t have an interest–but it is a fair point to question and research.

      2. Mike D, I used to own some of the preferred and also their bonds, but sold some time ago at a small profit. If I recall correctly, they do lease to Gazprom which is a Russian company. However, I was more concerned about their small fleet size.

        1. Lou, Good point about the fleet size. DLNG was in the process of rotating their fleet through its 5-year maintenance process this year, so losing even one ship per quarter puts a dent in their revenue. Their fleet is mostly ice class vessels contracted with Russia’s Gazprom to transport LNG from the Yamal peninsula to China. Not much the US can do about that arrangement.

    3. I am sure you would make it a point though to comment on BT’s articles–just to stay active. Stay tuned!!

      1. Tim, his “math skills” quite frankly annoy the hell out of me. He cant wait to post a quick upward blip, but never knows how to post negative returns for earlier recos… Maybe the calculator can only handle positive integers. Maybe that is the reason, lol.
        What is just as amazing is some of the commenters cant grasp the concept of what is going on. But some appear to be recently.

          1. Bea, everything is just always distorted….Trots out continously picks that have performed poorly and then acts like his last reco is the only one that counts math wise. I see another commenter busted him on his latest recycled “recomendation” today. If he was just totally candid I wouldn’t comment. Picks are picks, good and bad… But math should never be self serving. I have seen people have horrific picks, but they were always complete and forthright with their math. A pretty intelligent guy The Owl had a pick a year ago (Frontier Communications) that cratered over 90%. But he had his reasons it just didnt work out. But he was a man and owned his trade. I didnt throw stones in the comments section, I congratulated him for his honesty.

        1. If you really want to get under his skin as him ‘how is themaven’ coming. Recall he was moving his empire there and did a big interview with scumbag Heckman yada yada. I tried to warn him off as we have experience with Heckman, Levinson etc.

          Then after 6 months he disappeared–guess he found out I was telling him the truth.

          1. Tim, So I could mention that and repost the Ali Velshi interview on CNN when he got ran over by Ali. That would give him some fond memories, lol.

            1. That was down right embarassing–when I originally watched that I wondered what the hell was he doing.

            2. To be fair. I would never go on a show where the interviewer did not agree with me. Interviewers nowaday’s have to interrogate, have to increase their viewership, increase the intensity of the dialogue, provide entertainment, etc. It is not about seeking truth, but how to get advertisement dollars flowing ,or your job is on the line.

              On another topic Preferred Stock Trader was asked by Rida Morwa to write for him. The latest article was for KKR-A. It went as a pre-read to all Rida’s memberships, and they moved the stock $1 before the article went public. I like PST… but I don’t want to buy another membership somewhere else. But maybe that is what we have to do, to stay educated and buy memberships everywhere where we glean information.

              1. Preferred Stock Trader is a good person. Even has a foundation for helping people with paying for health insurance. I have noticed more sanity and less dividend dumpster cut disasters in Rida’s articles since PST has joined the team.

              2. You better be a very good advocate going on MSNBC (2 on 1 even) as a Trump supporter. Typically, his estimates of his capabilities far outweigh his actual ability. As we used to say in boxing, “Mighty mouth, hummingbird ass.” As for interviews, remember the sit down with Schorsch? He was like a groupie meeting Mick Jagger rather than a journalist.

                1. Brad has been very susceptible to BS over the years. I can remember any number of issues he was a strong sell on and then after ‘interviewing’ the CEO he was a buy. The one I remember the most is Farmland Partners where he super negative and then like a switch was flipped he was a buy in the 12-13 area–now at 6.27. Of course he ‘got my subscribers out’ before the big fall and claims to be a hero–this is similar to the Gridbird issue which we has held his feet to the fire on (KIM and SKT).

                  1. “…very susceptible to BS over the years.”

                    Hence his political involvement. And he finally found someone who would use him.

                  2. He actually had the nerve to get on anotner writers comment section to toot his horn about getting them out…But didnt have a responce when someone quoted the losses he incurred getting them out at a price well below his recomend price. I am not a big fan of facts with omissions.

  2. If DNLG is too racy you can go instead for the new Conagra issue at LIBOR + 75 bips for 2 years. After taxes and inflation, you will almost break even.

    1. I just play around with a select rotation of issues I will hold. But largely ~ 75% of my money stays pretty much where its at. When I buy something it is something I usually have owned many times. For example BANFP, I sold out last month around $27.50 and reentered this week at lower prices. So I am down on my purchases this week, but actually ahead when factoring in the flip from previous purchase. I just stay inside a select group I track and feel comfortable financially owning. It juices returns a bit, but I do it also for mental stimulation. The bulk of money is not used for this purpose.

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