Seeking Alpha

Energy Transfer Partners (ETP -1%) files plans to offer up to $1B in common units and debt...

Energy Transfer Partners (ETP -1%) files plans to offer up to $1B in common units and debt securities, as the pipeline operator looks to raise funds for general partnership purposes.
From other sites
Comments (2)
  • Jimmpop
    , contributor
    Comments (5) | Send Message
    Most people who invest in M L P ' s don't understand how borrowing adds to the bottom line visa vie the tax treatment they recieve . Sunoco - brilliant move ! Watch this company grow and prosper .
    20 Aug 2012, 11:51 AM Reply Like
  • Sch
    , contributor
    Comments (57) | Send Message
    I think you are a little confused.
    ETP is not borrowing as in a cash loan. They are issueing more stock and other units.
    This dilutes the value of the stocks held by investors. More common shares in the float can lead to lower per share dividends unless the Company can sharply increase earnings, which can take years, if at all.
    When the news broke about the new shelf registration the stock dropped on high volume, which is indicative of large " players" getting out of the stock.
    20 Aug 2012, 11:41 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs