Nustar Energy (NS), of which we just purchased debt, has announced a merger with their general partner. Additionally they reduced their distribution from $1.095/unit to 60 cents/unit. Lastly they announced fairly soft earnings–a small loss. Actually earnings are an improvement on earnings from the year ago quarter.
We don’t believe any of these items should have a material affect on the baby bonds we bought yesterday, although there could be a ‘knee jerk’ reaction lower.
We need to study there items closer to see if there is a material affect on our holdings. We will try to get this done in the next day or so.