Oaktree Capital Prices Preferred Units

Large MLP Oaktree Capital (NYSE:OAK) has priced their new fixed rate preferred units (preferred shares of limited partnerships are call units) with a coupon of 6.55%.

The MLP has another older unit offering outstanding (issued 5/2018) which has a coupon of 6.625% and it is trading at $25.74 leading us to believe that this issue should move up in the $25.25 to $25.50 area within a month.

The shares will be non-qualified, non-cumulative and investment grade rated by S&P and Fitch.

The terms are the normal ones–quarterly payments, and optionally redeemable after 9/14/2023.

The issue is a larger one with 9,400,000 units offered with an additional 15% (1,410,000 units) reserved for overallotments.

The pricing term sheet can be found here.

The issue should trade on the OTC Grey Market under the temporary ticker OKTGP on Friday.

Thanks to xerty for keeping us on our toes.

 

6 thoughts on “Oaktree Capital Prices Preferred Units”

      1. Steve.. did you buy in your taxable or tax deferred account? I’m thinking of picking up a few in my IRA to avoid the K1 processing.

        1. I have NS-PRC in my IRA already. So we think alike avoid the K1 via an IRA. However, I went taxable with this purchase. I don’t want to push this 1,000 UBI limit, so I’ll deal with this in my taxable accoubt unless I flip it (unlikely but possible)

  1. Did not find the ticker OKTGP on Fidelity online. as of 11:15 AM. Found it on Etrade.

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