This is a terrible deal for NGLS holders. 1) If you owned NGLS for any period of time, you will be hit by a huge tax bill as past distributions which had been taxed deferred will now be taxed in the form of capital gains; 2) Since TRGP is a corporation most or all of its dividends will not be deferred as in the case of a partnership so most future dividend will be immediately taxable; 3) Doing the math you will find that even if TRPG is able to maintain its present dividend, NGLS holders will still find their distributions will be cut by one third. 4) While NGLS has less than half of its total assets financed by debt, TRPG has a debt load of 89% of its total assets, a dangerously high level.
lasiskind, I own the preferred shares in a IRA account and therefore believe I will not face a tax event. becasue I'm only taxed as ordinary income when I make a withdrawal from the IRA.
The market killed TRGP by offering .62 now you think they are going to raise it? keep dreaming. And BTW TRGP isn't actually buying NGLS - NGLS is buying the parent and changing its stock symbol to TRGP- NGLS market cap is 6 billion TRGP 3 billion ( who's buying who) - a case could be made that NGLS offered to take the parent out at 10 dollars less than it was trading at ( when then deal was made TRGP was 10 higher - NGLS 2)
Those that owned KMP and EPB in IRAs were hit with massive UBTI tax bills after the KMI buyout
There is a little posted about it on the KMI board... I would use the search feature and ask for 'UBTI and IRA" on "current bd" feature on the KMI bd
This management team REJECTED a $90 buyout offer in summer of 2014. I would like that explained.
My email to investor relations:
"When are you going to call this deal off? When the units are at zero?"
I did the same but I don't expect an answer. I'm surprised that TRGP stock price has dropped almost 24% from when the deal was announced given the deal is immediately accretive to TRGP.
TRGP shareholders hate this deal as much as NGLS shareholders do.
I have no idea where the bottom is here but at some point both of these stocks become a screaming Buy. This deal needs to be increased which would help offset the tax burden to existing shareholders and a "Collar" needs to be included with a floor and ceiling protecting both company shareholders.
How the NGLS BOD approved this deal should be investigated. I smell conflict of interests here up the Yazoo. The deal is just plain awful and amateurish.
I see comments about such a proposal, but I have not seen anything from the company that is a proposal. Where are you seeing the proposal?
i really can't believe my screen at the price action. I mean TRGP would be getting a steal if the current deal holds. Maybe hedge funds have been short NGLS and need to drive it down. Makes no sense for TRGP to be getting clipped like it has
TRGP is the buying company and will need to follow this path:
MPLX LP (MPLX) and MarkWest Energy Partners, L.P. (MWE) (MarkWest) today announced that in connection with the merger of MPLX and MarkWest, MPLX has agreed to increase the amount of the cash consideration payable to MarkWest common unitholders by $400 million, from $675 million to $1.075 billion.
I hold the preferred A shares recently issued within a few weeks
I'll admit that I have no idea what a merger of a parent co with a MLP can do the preferred shares
Will they be redeemed ?
shocking that the company is silent right now. THey need to either call off the deal or raise the buyout price immediately see MWE.
I just read the investor presentation on TRGP web site. Dividend in 2018 is projected at 4.81. At an 8.5% yield, TRGP stock would be 56.58. At .62 per share, NGLS share in TRGP would be worth 35. That's about what I bought at. But, I keep getting my 8.5 percent current return I guess. Just curious if anyone sees it the same way or am I missing something. I own it in an IRA, so I am not concerned about the tax consequences.