Running_Man
Thinks s/he gets paid by the post
- Joined
- Sep 25, 2006
- Messages
- 2,844
Bob, the news is getting better for NSS...Another forum member just dug this up from UBS.....
On November 22nd, NuStar amended its credit agreement to specifically exclude NSS from debt calculations with secured creditors, an UBS report on NuStar confirms: "The recent amendment to the credit agreement for NuStar Logistics suggests management intends to keep NSS outstanding beyond the January 2018 call date providing an attractive floating rate to investors. We do not view this amendment as a negative signal, and point to the NuStar Logistics 10-year bond as an institutional market indicator of where the company can access capital if required."
As a major point to emphasize through all of this re-pricing over the last couple months that NuStar's debt across all maturity have not moved which tells us the market has not anything material in the business to warrant selling. UBS takes it further as says they issue more of the 10 year at around 5%. At $25.05, it isn't the best interest payment adjusted price, you could have gotten the last 2 months BUT as the picture on NSS gets clearer that it isn't going to get called.. We should see a nice bid higher in February/March..
OK I do not understand the logic of this, UBS beleives that the interest rate would be 5% so the bond will be kept outstanding at 7+%?, what would be the reason to not try and save the interest?