Global Partners: Watch Out For The Redemption Of The Preferred Shares

Binary Tree Analytics5.63K FollowersFollow5ShareSavePlay(6min)CommentsSummaryWith a current leverage ratio of 3.6x (down from pandemic highs of nearly 5.0x), GLP no longer requires the "equity credit" provided by preferred shares to satisfy bond covenants. The company's robust balance sheet and positive outlook give it easy access to cheaper institutional capital. The redemption of the Series A units in early 2024, funded by a senior note issuance, serves as a direct blueprint for the expected call of the Series B units. The company's bonds are trading at very narrow yields on the secondary market. Wirestock/iStock Editorial via Getty Images Thesis We last covered the Series B Preferred Shares (GLP.PR.B) from the MLP Global Partners (GLP) a year ago, when we authored an article that showed our expectations for a oneThis article was written byBinary Tree Analytics5.63K FollowersFollowWith an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.Analyst’s Disclosure: I/we have a beneficial long position in the shares of GLP.PR.B either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.