Martin Midstream Partners LP (NASDAQ: MMLP) is now going to sell 2.3 million common units (LP share-equivalents) in a secondary offering. The company listed that the proceeds will be used to pay debt that is covered under its revolving bank credit facility and it also plans to use a portion of the funds for general purposes.
The MLP shares (units) were up 1% at $37.72 on Thursday and the units were down just over 4% in the after-hours trading session. The 52-week trading range is $27.00 to $42.64, the average daily volume is $barely 52,000 units, and the market cap is roughly $772 million before the effects of this offering. Keep in mind that the yield-equivalent (unit distribution) screens out as being 8.4% on an annualized basis.
For whatever t is worth, Martin Midstream is listed currently as trading above the consensus price target objective by Thomson Reuters of $36.33 per unit but that is literally only compiled from three different analyst price targets. This one may be too small for now for most analysts to cover.
The firms that cover this one are set to grow substantially after the underwritten sale. This lists that RBC Capital Markets, Wells Fargo Securities, and UBS Investment Bank are the joint book-running managers. Co-managers are listed as Raymond James as a senior co-manager; additional co-managers are Baird, Stifel Nicolaus Weisel, and BB&T Capital Markets.
JON C. OGG