The units were priced to yield lower than any other MLP I hold, it makes sense to take advantage of that. Obviously that's going to whack the price this morning, the price is $27.50, but if you're holding long term for cash flow, you have to view this positively.
take a look at page 4 of this targa presentation-it shows TRI being in the holding position of NGLS but in any case shows holders of TRI shares which tells me profits being taken, when you go to presentation it will ask you to accept terms
HOUSTON (AP) -- Natural gas producer Targa Resources Partners LP on Thursday said a subsidiary will sell 8.5 million common units in a secondary offering.
The units are owned by Targa LP Inc., a wholly owned subsidiary.
I think it should have read GP instead of LP.
Technically it was a wholly owned subsidiary of the GP that sold the shares, not the GP The effect on the share price was and is the same as a secondary whether that is what it is called or not. A relatively large number were priced under the then current price in order to entice big buyers.
I agree they are probably just taking some money off the table but the ownership structure of the subsidiary is not clear to me.
this 8+ million shares was "not" a secondary.
It was the GP selling about a 1/3 or so of its shares. My guess is for the owners of the GP to take a profit and not to buy other assets or the press release would have said so in my opinion.
I think that in addition to this chunk getting sold, there is uncertainty as to whether NGLS will be doing an offering of their own to pay for the dropdown.
I like NGLS and the recent run up has moved it from my 3rd largest holding--to the #1 largest holding of mine. I'd just like a little certainty as to how they will pay for the latest dropdown.
NGLS is in a sweet spot businesswise right now. A little clarity about what the rest of the year will bring will go a long way.
What about the distributions? previosly, was Targa LP getting the distributions on the shares it owned? if so, they were plowing it back into the company. if not, now the distributions will be made to outsiders that will accrue no benefit to the MLP.
Some help here please.
seriously these people cant read at all.......The offering is for the PARENT you idiots not the LP and has nothing to do with NGLS. Infact I am very encourage this is taking place as mgt is ready to make some acquistions and large ones at that at the parent level.
You don't understand
NGLS isn't getting any money from this offering.
This is Targa (the parent) selling NGLS shares it already owned. It says that right in the 2nd paragraph of yesterday and today's PR's
I'm not saying this is all bad. but it is of no benefit at all to us
""HOUSTON, April 9, 2010 (GLOBE NEWSWIRE) -- Targa Resources Partners LP (NYSE:NGLS - News) ("NGLS" or the "Partnership") today announced the pricing of a secondary public offering of 8,500,000 common units owned by Targa LP, Inc., a wholly-owned subsidiary of Targa Resources, Inc. ("Targa"), at $27.50 per unit. The underwriters have been granted a 30-day option to purchase up to 1,275,000 additional common units.
The Partnership will not receive any of the proceeds from this offering and the number of outstanding common units of the Partnership will remain unchanged. The offering will be made under an effective shelf registration statement on Form S-3 of the Partnership, filed with the Securities and Exchange Commission.""