News that MLP's could lose the current tax advantages due to
Politicians trying to get more revenue has been driving some
investors to sell now. That may not be what investors want to
hear, but it was a topic mentioned in the Wall Street Journal
Deal accretive in 2014. The tax issue is much ado about nothing... the revenues that can be raised are minimal and Obama TWICE has not included any changes in his version of tax increases specifically mentioning last time that significant job creation has been coming from the MLPs.
it won't affect the distributions--acretive in 2014 means it will help to raise them in the future. They may have to do another smaller offering early next year though as this one, though it is fairly large, isn't quite enough to get them to their 50/50 debt/equity target for deals like this. But still, on the face of it, this isn't a bad deal, especially if you add some units down here.