For those of us who don't sell their MLPs (for tax reasons), the unit price premium is not that important. I prefer to judge the deal by the impact on my portfolio cash flow and on that basis the premium is pretty minimal (see my post titled buyout distribution math). For that reason, I'm not particularly thrilled by this deal. If CPNO had resumed distribution increases later this year then I'd expect that distributions from CPNO would soon surpass those from KMP at the conversion ratio.
Lisa this deal tells me CPNO still had to go to the well for much more future capital while concurrently trying to achieve the $2.91 target distribution; so I suspect the deal, if we were a year or so from now and looked back, would be pretty good. from my perspective kmp will now be my second largest holding with prospects of continuing distribution increases and the financial strength to support them.