- The Global Partners LP common shares have recently plunged, being down 20.94% in the past two weeks and down 10.07% in the past 3 months.
- The Series A preferred shares (GLP.PA) are fairly flat in the past 3 months and currently yield 9.29% (yield-to-call) versus 11.19% for the common.
- The Series A preferred shares have an August 2023 first call date and avoid any company debt maturity wall with most GLP debentures coming due in 2027 and 2029.
- Although having had a weaker Q2 2021, GLP is a robust MLP with an enviable track record and an experienced management team.
- From a risk/reward perspective, the Series A preferred shares represent a much more stable risk-adjusted proposal, with more weakness ahead for the common shares.
For further details see:
Dodge A Falling Knife - Ditch The GLP Common Shares For The 9% Yielding Series A Preferred Shares