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What: Shares if Inergy
So what: Inergy will get $200 million in cash, $600 million in common units, and up to $1 billion in senior notes for the business. Shareholders will get their corresponding share of 13.7 million common units of Suburban following their registration with regulators.
Now what: Inergy's market cap is still just $2.5 billion after the deal, and this will give the company a chance to pay down some debt if it chose to. I am also concerned about what the loss of 600,000 customers will mean to future earnings and the company's dividend payout. I'll take a wait-and-see approach to the stock because I would like to see what the direct impact will be and what management will do with the money.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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