Another New MLP Comes to Market

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August 9, 2014 – 2 pm 

Once again another new Master Limited Partnership has come to market–there seems to be a flood of never ending MLP offerings—and it is our guess that in the weeks and months ahead we will see bunches of new MLP’s and REIT’s as the tax advantages are sought out more widely,
The next new issue to begin trading is Hoegh LNG Partners LP (ticker:HMLP).  This is a MLP involved with the floating storage and regasification (FSRU) of liquified natural gas (LNG).
Initially the fleet will be composed of just 3 FSRU ships, but the sponsor of the MLP, Hoegh LNG, has other LNG assets (ships and infrastructure) which they have agreed to make available to the partnership for purchase.
We do also note that these 3 ships are on contract for the next 17 years–definitely a positive factor. 
Note that Hoegh is one of only 3 operators of FSRU’s in the world, which would see to make them a potentially lucrative investment, although we have much more due diligence to do on this issue.
The issue started trading on Thursday and came public at a price of $20/unit and traded up to $22 on Thursday and further to $24.50 on Friday.
Minimum distribution to start is 1.35/unit (6.75% on the offering price) or 5.5% on the closing price Friday.

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Tim McPartland

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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