As anticipated and noted by readers Energy Transfer Partners (NYSE:ETP) has priced their new fixed-to-floating rate preferred with an initial coupon of 7.625%.
The coupon will be fixed until 2023 after which it will float at a rate of 3 month Libor plus a spread of 4.738%. While the initial coupon is fine the spread on the floating portion could be a bit higher–but it is what it is.
The issue will trade with the permanent ticker of ETP-D. The issue will start trading today under the temporary OTC Grey Market ticker of ETPZF.
We are considering this issue for a small position in both personal portfolios and in the High Yield Portfolio.
We need to perform a bit more due diligence and read what readers have to say on the issue prior to purchase.