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PVR Buyout



October 10, 2013 – Comments (4) | RELATED TICKERS: PVR.DL , WPZ , BBEPQ

Since end 2008 I have been suggesting many MLPs, BDCs and REITs for people to consider.  One was PVR.  Earlier this year Deej wrote a blog wherein I again suggested PVR.

At the time it was trading low 20s.  It did run up to 29 then fell to slightly under 23 after a secondary announcement.  Today it is trading over 26 based on a buyout offer from Regency Energy Partners.  The offer is 1.02 shares of RGP plus about 50 cents cash per 1 share of PVR. They claim it to be $28.68  per share but RGP is currently trading at 26.

I really don't know much about RGP so I can't really comment if the swap is good or not.  I actually don't like it since I think PVR had a bright future.  Also it will be a distribution cut 2.20 from PVR to 1.86 RGP.

I will probably take the money and run and re-invest it between 2 other MLPs I own, WPZ and BBEP.

So for those who bought from my suggestion cheers to a quick profit.

4 Comments – Post Your Own

#1) On October 10, 2013 at 12:01 PM, awallejr (35.12) wrote:

As an additional thought, the May 2014 22.50 puts are selling bid/ask .80/1.50.  Selling even at the ask seems like easy money absent any black swan event.

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#2) On October 10, 2013 at 12:58 PM, portefeuille (98.44) wrote:

the bid ;)

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#3) On October 10, 2013 at 7:28 PM, awallejr (35.12) wrote:


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#4) On February 18, 2014 at 8:08 PM, awallejr (35.12) wrote:

Those 22.50s now at .10/.30.  I also decided to keep my shares and stick with the merger.  I think together PVR and RGP make a solid company.

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