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. 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 ?

  2. 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.

  3. 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.

  4. 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.

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