$28.00 down another 4.12%.
From Barron's Income Investing:
When Kinder Morgan (KMI) posted earnings last week, investors groaned as it lowered distribution growth guidance.
But the silver lining was that the company also said it wasn’t going to do any new equity raises until the middle of next year and had instead come up with mysterious sounding “alternative funding sources” to meet its funding needs.
Monday morning Kinder revealed its plan is to issue $1.6 billion of mandatory convertible preferred stock. The new issue will mature in three years. Some details are in a presentation on the company website, but the interest rate isn’t among them. Sources told Barron’s the yield is expected in the 9% range. KMI shares yield 7.3% currently.
Investors apparently don’t like the deal terms so far. Kinder Morgan shares were down 4% Monday to $28.11 by 1 p.m. ET. The shares are down 36% in the past six months.
Fitch Ratings affirmed Kinder’s triple-B minus rating on Monday. That’s the lowest “investment grade” rating in Fitch’s scale....MORE