Large MLP Global Partners (NYSE:GLP) has priced a new fixed-to-floating rate issue with an initial coupon of 9.75%—WOW. After 8/15/2023 the issue will trade with a coupon of 3 month Libor plus a spread of 6.774%. This coupon is much higher than we thought it would be and one wonders why it is this high.
Regardless we will do some more due diligence and consider a purchase of this issue.
Thus far no OTC Grey market has been announced.
The issue is cumulative and the distributions will NOT be qualified distributions. A K-1 will be issued for this issue at tax time.