Key adjustments from last week:
- UAN’s 12 million unit offering (13.8 million with the over-allotment) announced on May 21 was secondary units being sold by a subsidiary of CVR Energy, Inc. (CVI) so UAN did not receive any proceeds from the offering and the total outstanding units did not change:
Offering priced at $25.15 on May 21 (4.6% discount to the May 21 close)
- This is Mr. Icahn selling again just like the prior week’s CVRR unit sale
- First large Insider sale since UAN’s IPO on April 7, 2011
Subscriber Version Changes:
- Adjusted the Distribution Coverage Ratio Watchlist page to include MLPs with DCRs less than 0.91x (shortened the list slightly from the 0.95x threshold).
- Added a Risk Rating Groupings page so they are available as a quick reference each week instead of having to look them up in the most recent full Monthly Analytics Report.
The MLP Protocol full Monthly Analytics Report for May is now available, the June 2013 report will be available after May 30th.
MLP Protocol Weekly Snapshot report: (click to open) MLPP 052413 Snapshot vFree
I don’t have any specific knowledge, but I would assume that the sales generated taxable gains at the CVI level. You can dig in CVI’s 10-K to see if it has any info on the CVI tax basis for UAN and CVRR. Also when they did the IPO of each you may be able to dig and see if that triggered taxable gains at those points in time (check CVI 10-K, 10-Q, press releases, etc. and also the IPO prospectus for each), if so then the additional sales would also generate taxable gains.
If you’re long CVI congrats on that additional special dividend of $6.50 announced today (on top of the $5.50 special dividend back in January).
Philip, do you have an idea about CVI tax when selling the units in UAN and CVRR?