We Unload Our NuStar Baby Bonds

I know we have many holders of the NuStar floating rate senior notes (NYSE:NSS) that are on the site and I just wanted to pass on that I sold my personal holdings of 400 shares of NSS at $25.95.  Just too good to not lock down the capital gain at this point in time.

We had held these 400 shares since 5/2 and bought at $25.18.

As holders know we are in a “floating” rate period for these notes and the interest is being paid at 3 month libor plus a spread of 6.734% so should be in the 9% area right now.  This would give us an interest payment of around 56 cents/quarter.

Here is the detail on this issue.

We will look to re-enter the shares if they trade down at $25.10-$25.00 after going ex-dividend in a couple weeks.

9 thoughts on “We Unload Our NuStar Baby Bonds”

  1. Thanks Tim, Thank you Gridbird. I placed an order last sold and sold at $25.95 with limit order at $25.93.

  2. Tim, I sold mine also when it cleared $26 yesterday. Invested a chunk of proceeds into NS-A and NS-C since there is little difference in ratings. Had to keep in tax free to avoid K-1. Reentered CPE-A yesterday at 51.75 after selling them a couple weeks ago at $52.15. $51.75 was my reentry goal so it hit and I bought.

    1. Hi Grid–I noticed you had sold. I was quite amazed to see it move so high–obviously someone wants it worse than we do. I held CPE for years but took those gains earlier in the year and have not re-entered.

      1. Tim, like you I was surprised how it popped heading toward exD. So I partly sold to take the profit and partly because I like to buy and sell, lol..

      2. Well Tim, that was quick, I already sold my CPE-A for a quick 45 cent gain at $52.20. I dont get greedy trading above par, past call issues…

  3. Any new thoughts on WSR? I’m at the break even point now, excluding the dividends that were dripped, and trying to decide whether to sell or keep riding them. I could roll the money into the new COWN baby bonds if they start trading soon at a reasonable price.

    1. Hi Leonard–I keep my fingers crossed for a “bit more”. I have about 7% gain since early in the year. Likely I will be out soon.

      They claim they want to reduce leverage–the only answer is more common being sold so I fully expect them to come with another offering soon.

      1. Tim, I see WSR just declared its dividend (unchanged) for the next 3 months, so that is a plus. Guess I’ll hang on and hope it moves back up to $13 – $14 per share.

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