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Martin Midstream Partners L.P. Ltd. Part Reports Operating Results (10-K)

March 02, 2011 | About:
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10qk

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Martin Midstream Partners L.P. Ltd. Part (MMLP) filed Annual Report for the period ended 2010-12-31.

Martin Midstream Partners L.p. Ltd. Partnership has a market cap of $689.4 million; its shares were traded at around $38.93 with a P/E ratio of 56.4 and P/S ratio of 1.1. The dividend yield of Martin Midstream Partners L.p. Ltd. Partnership stocks is 7.8%. Martin Midstream Partners L.p. Ltd. Partnership had an annual average earning growth of 0.8% over the past 5 years.Hedge Fund Gurus that owns MMLP: Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Public Offerings. On August 17, 2010, we completed a public offering of 1,000,000 common units, resulting in net proceeds of approximately $28.1 million after payment of underwriters discounts. We used the net proceeds of $28.1 million to redeem from subsidiaries of Martin Resource Management an aggregate number of common units equal to the number of common units issued in the offering. Martin Resource Management reimbursed us for our payments of commissions and offering expenses. As a result of these transactions, our general partner was not required to contribute cash to us in conjunction with the issuance of these units in order to maintain its 2% general partner interest in us since there was no net increase in the outstanding limited partner units.

On February 8, 2010, we completed a public offering of 1,650,000 common units, resulting in net proceeds of $50.6 million, after payment of underwriters discounts, commissions and offering expenses. Our general partner contributed $1.1 million in cash to us in conjunction with the issuance in order to maintain its 2% general partner interest in us. The net proceeds were used to pay down revolving debt under our credit facility.

Debt Financing Activities. Effective March 26, 2010, our credit facility was amended to (i) decrease the size of our aggregate facility from $350.0 million to $275.0 million, (ii) convert all term loans to revolving loans, (iii) extend the maturity date from November 9, 2012 to March 15, 2013, (iv) permit us to invest up to $40.0 million in our joint ventures, (v) eliminate the covenant that limits our ability to make capital expenditures, (vi) decrease the applicable interest rate margin on committed revolver loans, (vii) limit our ability to make future acquisitions and (viii) adjust the financial covenants.

On March 26, 2010, we completed a private placement of $200.0 million in aggregate principal amount of 8.875% senior unsecured notes due 2018 (“2018 Notes”) to qualified institutional buyers under Rule 144A. We received proceeds of approximately $197.2 million, after deducting initial purchasers discounts and the expenses of the private placement. The proceeds were primarily used to repay borrowings under the Partnership s revolving credit facility. Pursuant to the terms of a registration rights agreement entered into in connection with the offering of the 2018 Notes, we filed an exchange offer registration statement with the SEC on September 16, 2010 with respect to an offer to exchange the 2018 Notes for registered notes with substantially identical terms. The registration statement was declared effective by the SEC and the exchange offer was completed in the fourth quarter of 2010.

Public Offering. On February 9, 2011, we completed a public offering of 1,874,500 common units, resulting in net proceeds of $70.7 million after payment of underwriters discounts, commissions and offering expenses. Our general partner contributed $1.5 million in cash to us in conjunction with the issuance of these units in order to maintain its 2% general partner interest in us. The net proceeds were used to pay down revolving debt under our credit facility.

Quarterly Distribution. On January 24, 2011, we declared a quarterly cash distribution of $0.76 per common unit for the fourth quarter of 2010, or $3.04 per common unit on an annualized basis, to be paid on February 14, 2011 to unitholders of record as of February 3, 2011, reflecting a $0.01 increase over the quarterly distribution paid in respect to the third quarter of 2010.

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