issuing shares that currently pay a 9.2% dividend in order to retire debt is very disturbing. Makes me wonder how high the interest rate is on the debt, if that high it indicates a very risky financial/business structure - junk status.
people, listen to ruby
ruby knows what she's talking about
this is what mlps do: they keep buying/developing assets using new equity because they pay out all profits; we're here to collect the payouts, so... how would the company ever grow unless they sold more units? as long as they keep selling new units at ever higher prices and as long as distributions per unit keep rising, WHO CARES that there are umpteen gazillion shares or umpteen gazillion shares plus 9 million?
Generally agree - but the last one did not and the market is ideal for this type of offering. Not saying I like to see it because I don't but I don't think it is as negative as many other secondary offerings.