Author Topic: CVI -- CVR Energy Inc.  (Read 2201 times)

lincolnc

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CVI -- CVR Energy Inc.
« on: July 19, 2016, 09:11:13 PM »
Anyone know anything about this name?

Saw an article on it.
http://finance.yahoo.com/news/five-lows-daktronics-inc-ruby-225820290.html

Apparently Carl Icahn is the Chairman.

See:
http://investors.cvrenergy.com/phoenix.zhtml?c=203637&p=irol-govboard

Business is not in great shape
http://investors.cvrenergy.com/phoenix.zhtml?c=203637&p=irol-presentations

Massive 14% dividend
http://finance.yahoo.com/quote/CVI/key-statistics

But at some point Icahn takes this this private?



awindenberger

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Re: CVI -- CVR Energy Inc.
« Reply #1 on: July 21, 2016, 11:14:11 AM »
I wonder if they will continue the $.50 dividend one more quarter if CVRR isn't able to pay out a dividend once again.

UAN can probably do $.45-.50 cents this quarter, which would send about $18M to CVI. That seems like it would be enough to support a $.21/share quarterly dividend by itself. The question is whether or not CVRR and pay a dividend this Quarter.

Simple Investor

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Re: CVI -- CVR Energy Inc.
« Reply #2 on: August 18, 2016, 05:22:48 AM »
The bonds down the chain (CVRR) pay 10% ytm.  The mature in 2022. 

I'm doing some work now on who backs those bonds. 

writser

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Re: CVI -- CVR Energy Inc.
« Reply #3 on: May 29, 2018, 07:06:31 AM »
Icahn offers to exchange one share of CVRR for 0.6335 shares of CVI in order to raise his stake to up to 95%. Price action was absolutely ludicrous today: at market open the discount to the offer was huge (~13%) and over the next half hour it dropped to a more reasonable ~4.5%. I was lucky enough to notice the press release and set up a decent hedged position pre-market and shortly after the market opened. Average entry at an 11% discount , just closed it out at a ~4.5% discount. Both legs were profitable. Easiest money I made in a long time, crazy.
« Last Edit: May 29, 2018, 07:18:19 AM by writser »
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

writser

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Re: CVI -- CVR Energy Inc.
« Reply #4 on: June 18, 2018, 07:21:44 AM »
Can anybody offer me a clue as to why the current CVRR / CVI spread is so large? Deal risk? Tax issues due to CVRR being a LP? Transaction is scheduled to close in July, no intermediate dividends as far as I can see but the spread is still ~5%. Please forgive me if this was a stupid question. No expert on the US tax system.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.