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Wednesday, September 03, 2008

Teppco (TPP) is getting hammered in the after market after announcing a 7 million share public offering. The stock was down 1.83 @ 30.01 and its down another 1.13 in afterhours with a 28 handle.

2 comments:

Anonymous said...

Well it seems that TPP will accept paying about 10% distribution for new equity investors (assuming the unit price holds at $28.85 (when considering the costs of underwriting )).

My guess that pipeline LPs will fall to 10% yields, if Mister Market fears there is any need for equity financing.

The credit crisis is far from over.

Anonymous said...

Very discouraging that these companies are willing to price deals at these levels. KSP is still trading below their deal price. Not good for the near term.