DCP Midstream has priced their new fixed-to-floating rate preferred units with a coupon of 7.95%.
The floating rate starting in 2023 will be 3 month Libor plus a spread of 4.882%.
The press release with some details can be read here.
The issue will trade on the OTC Grey market tomorrow under the temporary ticker of DCPUU.
This comment was posted on SI with regard to UBTI and DCP – C:
“As per IRS guidelines and the prospectus, payment for use of capital is deemed interest income. So yes to K-1, no to UBIT.”
I would like to put more DCP – B in my IRA but I do not want to deal with a 990T if I go over $1000 in UBTI.
Does the above comment sound accurate to all of you more experienced investors?
Thank you for your time.