Replies to post #1834 on Northern Tier Energy LP (NTI)

[jugs]

Where's WNR getting the bucks for the buyout?

Debt

And now piling onto NLG makes all the sense in the world. As you know, the refining stocks are not what they were just a quarter, 2, 3 or four ago.

ALDW is the only one I'd like to be owning but even that one won't make it into a portfolio of mine until the CS favors tactical change. This is simply the wrong time to be banking on a feast. The oven is broken. I'll probably be a buyer in February or March but only if I see units going for under $18. I think it's going to be a long wait for those fat distributions to be back in style.

[pete807]

jugs pointed to the new debt and I will add... dilution. Read the S-4 or my post:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=119997107
This morning both WNR and NTI were quite out of favor for good reason. The current formula adds some clarity to the offer which will be a premium to the current prices and values of these companies.
Seems to confirm my thought that people will want the cash and not the shares of WNR. 26.06 will be unrealistic as they will not have the cash and force a partial dumping of shares on the unit holders. The money borrowed was a gift of interest which will be paid to the sponsor bank(s). Goldman Sachs, and/or Morgan Stanley, who held enough units in their funds for clients to guarantee the vote on the merger.
It will be interesting to read the low information articles and comments that will likely continue to miss the big picture. I hope many traders also miss what is about to happen and the profit from Q4 makes them chase the yield before it is swallowed... and becomes cash flow to cover debt and dilution.