MLP Oaktree Capital (NYSE:OAK) has priced the new preferred unit offering we mentioned yesterday at 6.625%. It is anticipated that this issue will be investment grade.
The distributions on these units are NON-CUMULATIVE, but generally the terms are normal terms. Quarterly payments, perpetual, 5 year optional redemption time frame and NON Qualified distributions.
Holders of this issue will receive a K-1 at tax time.
At this time we don’t know if we have an interest. The coupon is decent for this level of quality, but we are more apt to wait and see how it trades over the next 6-9 months before committing. If we do buy some it will be a smaller position.
Shares will trade under the ticker OAK-D on the NYSE, but for now will trade for a week (plus or minus a day) under the temporary OTC Grey Market ticker OKTRU. Trading should start today, although some will not be able to trade it until Monday as their brokerage will not have it set up in their system.