April 26, 2018
Summit Midstream is a MLP that gathers and processes natural gas. We are buying the corporate bonds that mature in 2022.
CUSIP: 86614WAC0 Mature August 2022
Note: These are individual corporate bonds that mature at a specific date. They are NOT a bond fund–we generally do NOT like bond funds. We hold individual bonds to maturity at which time you get your money back in addition to the dividends that you have received. You are buying debt: not the stock which has dropped recently.
BUSINESS: Summit Midstream Partners, LP is a growth-oriented master limited partnership focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in the continental United States. SMLP currently provides natural gas, crude oil and produced water gathering services pursuant to primarily long-term and fee-based gathering and processing agreements with our customers and counterparties in five unconventional resource basins.
Consolidated Communications is offering a corporate bond at a bargain price: we call these ‘distressed’ and have had good luck in this area. We are simply maxed out on funds, so we will not be adding. BUT if you want to take some risk to get 8.57%, read the article which is linked below.
CUSIP: 20903XAE3 Mature October 2022.
Consolidated’s 2022 bonds are currently discounted, giving them a very competitive yield-to-maturity of over 8.5%. CNSL’s excellent track record for integrating acquired companies makes this outstanding yield even more attractive and these bonds a perfect candidate for addition to Durig’s Fixed Income 2 (FX2) managed income portfolio.
We own CGBD in the Core Portfolio. We came across a SeekingAlpha.com article which calls this a ‘strong buy’. The link to the article is below: it is extremely long and boring, and almost impossible to read and understand!! But if you like the Company details, read it. CGBD pays just over 8%
I strongly urge my readers to have a portfolio where most of all your BDC investments are in lower PWAY BDCs. I urge conservative investors to only hold lower than average PWAY BDCs. Owning CGBD gets you toward that goal. There is metric justification to grade this BDC as a “strong buy”.