Picked Up a Small Global Partners Preferred Position

This morning we purchased a small 300 unit position in the new Global Partners 9.75% f-to-f preferred units (OTC:GLPRU) at $24.82

Unfortunately we are a bit blind as we have not done a deep dive on financials but a quick once over showed them to be acceptable.  We DON’T advocate investors buying within the bunch of due diligence, but we have to break the rules sometimes as we are too busy at this moment to do things right.

Note this new issue is a small one–just 2.4 million units so it is likely to be gobbled up within a couple of days.

Whether we hold this one longer term or just flip it for 50 cents remains to be seen.

14 thoughts on “Picked Up a Small Global Partners Preferred Position”

  1. GLP has bonds due 7/15/2022 yielding app. 7%. It’s nice to have a maturity date. Tim, any thoughts about the bonds vs. the preferred?

    1. GLP has two outstanding senior note issues.

      1) 6.25% due 2022

      2)7.00% due 2023

      Both issues are Rule 144a securities, meaning they were private placements and not traded on any exchange.

      1. Found some info on the 7% notes:

        GLOBAL PARTNERS / GLP FIN CORP 7.000 06-15-2023 Fixed
        Cont Callable, Next Call 09-04-2018 @ 105.250, Make Whole Calls, GLEN HES CORP
        CUSIP: 37954FAD6

        Doesn’t appear to be 144a.

  2. Tim, I initiated a 700 share flip position of GLPRU @24.80 and have a feeling that as we get closer to its 0.6635 EX date we will see this Preferred move much higher. I am a very conservative investor, but what’s life without a bit of risk and excitement. My main driving force for the buy was that the underlying LP (GLP) keeps hitting new 52 week highs each day and when I spoke with their management I got a good feeling of confidence for their future business. Wishing you profitable investing, Nomad

    1. I decided earlier to get 300 more at 24.80 in a separate retirement account. I will flip half at least by first distribution time and hopefully ride it up.

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