Large master limited partnership Global Partners (GLP) will be selling a new issue of preferred units (MLP’s have ‘units’ instead of shares).
The company has one other issue of high yield (9.75%) fixed to floating rate preferred units outstanding which can be seen here. This issue trades strongly at $26.34.
The preliminary prospectus can be found here.
J was on this early.
Does this, new issue, mean GLP will be calling the existing issue?
The use of proceeds section states “We expect to use the net proceeds from this offering to reduce indebtedness under our credit agreement.”
No. GLP-A isn’t callable yet and because of the reset the A is actually at a much lower coupon than the new issue.
Anyone have a guess or indication on pricing?
priced at 9.50%.
I hold a full position in the existing issue. I want to give management’s discussion a close look because the 2020 Q’s suggested that GLP picked up some nice but non-recurring gains from the negative oil price hiatus last spring. I wouldn’t expect 2021 to show a great comparison with 2020.
Good for you Potter–9.75% is a tasty treat for you (in moderation).