Update–The OTC grey market ticker is announced at GLPRP
Limited partnership Global Partners (GLP) has priced their new issue of preferred units.
The issue is fixed rate and prices at 9.50%. The issue is cumulative, but non-qualified for preferential tax treatment.
The OTC grey market ticker has not been announced–we will update this page when the ticker is known.
The pricing term sheet can be found here.
GLP-A issues a K-1. Will GLP-B issue a K-1?
Interesting that QO has it- but no % etc:
Global Partners, % Series B Cumulative Red Perp Preferred Units
Ticker Symbol: GLP-B CUSIP: Unknown*
And yes, as Bob -in-de noted, the otc is trading one day after IPO … odd
1st impressions ….
Heck of a high rate at 9.50%. Trading now at 24.60 to yield 9.64%.
Using this to pay off much lower cost but shorter term debt. Much lower, as in 3+%. They are paying a very heavy price to go out in term.
By comparison, company recently issued 6.875% bonds now trading at 106.75 to yield 5.38%. To have a 400+ bps spread between preferred and debt is extraordinary.
Company is very debt heavy overall. Earning are respectable and show some stability but I’d like the company much more with less leverage.
To me, owning preferred is too far down the capital stack to be comfortable on a company with so much debt in front of you.
I own some GLP-A but it’s in my “nervous” bucket.
The new B is clearly better than the A.
Bob, you are one of the smartest guys in the room. I think the new B is clearly better than the A, even if both were selling at the same price. If you agree, I’ll probably buy some B.
GLPRP trading 24.64.
Have you tried trading it ?none of my brokers seem to have the symbol recognized. TD Ameritrade gets closest with a quote but not able to purchase anyway.
24.80 from Wells Fargo.
schwab bond desk claims they won’t be able to trade even by cusip until 3/28.
I will call them again in a while and see if I can find a smarter broker.
Typical schwab ineptitude.
A few minutes after I called them (when both the regular broker and the bond desk said they couldn’t trade GLPRP and wouldn’t be able for 10 more days), I tried placing a trade using the little quote/trade box on the bottom of most schwab pages. It went through and filled. I then tried it in streetsmart edge – which wouldn’t give me a quote, but would let me trade. that filled too.
i got it at 24.85 on tda just now
you have to enter it in the snap quote line
I sold some of the A
Did TDA hit you for the 4.95 trading fee? Etrade did.
Surprised there’s a $26 bid for GLP-A this morning. The new issue is clearly superior.
Interesting in reading their profile that they own 1,548 gas stations including 277 Convenience Stores. They have over 2,300 employees. Another one I won’t buy as when I see that type of coupon it makes me very skeptical. Have you ever looked at something and said to yourself there’s just something here that doesn’t look right?
GLP-A is pretty similar and has been trading for 3 years. Was up around $27 before the covid crash, back up around $26.
Their “common” has been more volatile, but the “preferred” has been OK.