Replies to post #1665 on Alon USA Partners, LP (ALDW)

[pete807]

Correct... they are locked in step. The 30 day thing was to justify their offer of .49, and can be kind of seen as butt covering...
I have 6194 units in three accounts. I don't recommend buying any more for possible gain and watching for DK for a rebound a bit which will also help us before the deal closes.

Edit: At the close of the deal it will also dilute DK to give shares so I expect a drop and I hope to sell early in 2018 to delay taxation... never getting on the DK bus, lol.

[jugs]

OK, here it is---and it's not pretty:

The original critical info in the 11/8/17 press release announcing the consolidation of ALDW into Delek is as follows:

This implies a 5.0 percent premium to the 30 trading day volume weighted average ratio through and including November 7, 2017, of .4666 and a 2.9 percent premium to the ratio on November 7, 2017, which was the day before the parties announced this transaction. This transaction was approved by all voting members of the board of directors of Alon Partners' general partner, upon the recommendation from its conflicts committee and by the board of directors of Delek

After speaking to Ameritrade's representative and two separate laborious conversations not amounting to a whole/hole lot (lol), it turns out that the terms stated above hold until such time as the DTC issues an update as per directives from Delek. This is the person who, like a transfer agent, is responsible for communicating original terms of transactions as well as mid-point changes. Obviously Delek holds the key to our futures, and I hate that, frankly.

As I'm interpreting things, I'd be very cautious if thinking of selling off more than a token amount of ALDW so as to enable pouring newly freed up cash into NGL or something else to take the place of ALDW. My preference is NGL #1 and DKL#2. I've not yet initiated a position in DKL. However, we've got to be considering that Delek may issue one or more changes between now and then to limit the company's exposure...changes that rewrite the terms calling for the 0.49% swap.

It's not engraved in stone.

My advice: Don't be driving with a blindfold in place. I'm doing nothing or nearly nothing at this time as there's no way to know everything.