"Additionally, all Crestwood Midstream public unitholders other than Crestwood Holdings will receive a one-time cash payment at closing of the merger of approximately $35 million in the aggregate, or $1.03 per unit,"
Does anyone know what form this payment is likely to take?
Will it be a special distribution (line 19 on the K-1) and therefore not taxed but lowering the cost basis?
Distributions are generally not taxable themselves in the partnership arena, unless you have a negative tax basis. Your prorata share of the partnership taxable income is taxable, generally not the distributions themselves. I would not expect an additional distribution to be taxable.
While clearly I paid too much for my CMLP at $25.59, what about those people who paid in the $25-$29 range over the last year? I just don't see how this is such a good deal.
But the $1.03 is not a distribution from CMLP. It is part of the merger consideration that you get from NRGM. I think it will be taxable, and the only question is how is the tax calculated and whether it is ordinary income or capital gain or both.