It is immediately accretive to EPS as it increases earnings (lower interest expense) by about $2.5 mln/qtr (about $3.33/ new shr annualized) that the Street estimates to be losses for next two seasonally weak quarters and $2.85/shr in 2014. Its roughly cash neutral after distributions of $3.50/shr (there is about $10 mln cash left after debt repurchase). Its good for credit worthiness which may lower future funding costs. Seems like a smart move.
S.O.B. again? I was not happy to see this little tidbit shortly after we closed above 50.00.
I wonder what they will price it at? They want to pay off debt they're paying 7.75% on, how nice. Could have come up with a better idea then this secondary offering nonsense.
Not a bad move IMO. These moves down with secondary offerings are usually quickly recovered by most MLP's. And this one, to repay debt that is substantially above today's rates, is a good move for the long haul. It'll save many $$$ in the long term in debt service.
5% dilution. Not a big deal. they would rather pay $10M in distributions to shareholders than to have senior notes hanging around their necks. Besides, these notes may have covenants that could restrict the business. Sounds like a good move in principle to pay down debt w/o knowing the details, I wonder if these notes came from the NRGY deal. hmmmm!