Giant MLP Energy Transfer (NYSE:ET) has announced the issuance of new preferred units.
The shares will be the 3rd fixed-to-floating rate unit the company will have outstanding.
The shares will carry with them the issuance of a K-1 at tax time.
Shares will like carry credit ratings of BB from S&P and Ba2 from Moodys–not investment grade but fairly strong.
The shares will likely be issued with an initial coupon of 7.50% to 7.625%, although with a fixed to floating rate issue there are many moving parts such as the spread that will apply when the coupon begins to float in 5 years.
The OTC Grey Market ticker has been announced as ETPEP which means we should see pricing on the issue tonight.