Last night, APL priced a HY bond offering. They intended to sell $450 MM of bonds to retire the 8 3/4% bonds 0f 2018 through a tender offer (bonds are not callable yet). This is about $390 MM including the premium to par. They issued $650 MM of 5 7/8% bonds due 2023, or 390 bps spread to Treasuries, due to overwhelming demand.
You have to believe the issuance of HY bonds at both ARP and APL will bring Institutional attention to the entire ATLS/APL/ARP complex. Effectively, one can create a synthetic convert by pairing the bonds with a requisite amount of common units with a very interesting income profile with upside to rising distributions on the units. Even more interesting would be to own the bonds of either ARP/APL and pair with the ATLS GP units to gain exposure to a leveraged play on rising distributions at ATLS through the IDRs.
A dream come true for those who like to play the junior portion of the capital structure. I'd rather just be long only the ATLS GP units to maximize leveraged exposure through the IDRs of the fundamentals of the underlying MLPs.