Energy Transfer Partners Announces New Fixed-to-Floating Rate Preferred

Giant MLP Energy Transfer Partners (NYSE:ETP) has announced intentions to issue a new Fixed-to-Floating rate preferred stock issue.

Details of the issue have not yet been announced.

ETP had just sold a f-t-f issue in April with an initial coupon of 7.375% which can be found here.  The issue had been trading strong at $25.60/share until the new issue was announced this morning and it is now trading at $25.00.

Preliminary details of the issue can be found here.

12 thoughts on “Energy Transfer Partners Announces New Fixed-to-Floating Rate Preferred”

  1. Any interest in this one or ETP-C? From another board the new issue will have a 7.625 coupon. I just bought some DCP-B. ETP seems the safer company.

    1. No interest from me. I’m only interested in term preferred, 10 years and under.

    2. I have ETP-C and it has traded surprisingly strong. Credit rating is better than DCP-B at least.

      I try to stay away from the perpetuals with interest rates going up, but this was an exception. I guess it will trade down now to match the interest rate on the new issue if the new one is higher. We will have to see the details.

  2. I’m interested ETP-C if it drops to $24.50, and it should go ex-div in about two weeks which is a bonus. Otherwise, I’ll wait and see how the D trades.

  3. I see oil prices are starting down again. If we see the trade war grow in size it could hit that even harder. Think I will pass on this one for now.

  4. Thanks re K1 responses. I’m not fond of processing K1s during tax season since I do my own taxes but I suppose if I purchase these types of securities in an IRA, it’s something I will not need to worry about. Just unsure if I would need to process the K1 if/when I sell those shares from my IRA. Something I can research.

    1. Rich,
      If the K-1 issuer is or was held in an IRA (Trad, Roth, SEP), you likely won’t have to do anything at all. When using Turbotax, it will ask you if the K-1 is held in an IRA. When you answer yes, it halts any further questioning and moves on. You don’t enter figures, do calculations, nothing… I swore off MLP’s for years, but now, the only way I will own them is in an IRA – as it eliminates the paperwork with the K-1. At least this has been my experience for at least 8 years now or so…

      1. Grant.. thanks for the response. I understand that while owning the security no K1 processing is required, if in an IRA (Traditional or Roth). Does that also hold true for when I sell the security and have a qualified withdrawal ?

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