Strong midstream energy MLP Targa Resource Partners (NYSE:NGLS) has recently released a investor presentation.
NGLS has a high yield 9% fixed-to-floating rate preferred outstanding (NGLS-A) which pays a monthly dividend. Currently the issue is priced at $26.30 as the company is a strong master limited partnership. The issue is redeemable 11/2020 and shouldn’t be bought unless the price sets back a bunch (like a dollar). We believe there are high odds this issue will be redeemed as it has a spread of 7.71% (plus 1 month Libor) which will put the coupon at 10% or greater (with todays Libor rates).