a blog dedicated to the discussion of MASTER LIMITED PARTNERSHIPS and the day to day news related to the group...along with perhaps a few other things...as long as the conversation is kept civil. Although i have no problem telling you what i am doing regarding my trades...PLEASE DON'T ASK ME WHAT YOU SHOULD DO REGARDING WHETHER TO BUY, SELL OR SHORT!!! i am not in the stock business.
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.
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.
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.
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 )).
ReplyDeleteMy 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.
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.
ReplyDelete