SAN FRANCISCO, Nov. 27, 2018 (GLOBE NEWSWIRE) -- Steel Partners Holdings L.P. (NYSE:SPLPPRA) is a diversified global holding company that owns and operates businesses in three principal sectors: Diversified Industrial Products, Energy Services, and Financial Services. Steel Partners Preferred units currently have a remaining term of approximately seven years, a $25 liquidation value, and provide quarterly cash flow with a 20% redemption in 2020 and the remainder in 2026. The current yield to maturity is approximately 9%. The company’s common units trade on the New York Stock Exchange under symbol SPLP.

  • Management ownership of Preferred units: 12%; management ownership of Common units: 54%
  • Strong free cash flow and balance sheet, with total cash and investments of $335 million as of September 30, 2018
  • 2017 revenue of $1.4 billion; 2018 reported guidance of $1.5–$1.6 billion
  • 2017 adjusted EBITDA of $164 million; 2018 reported guidance of $180–$188 million
  • 4,800 employees and 75 locations across 8 countries as of December 31, 2017
  • Culture of continuous improvement and implementing lean manufacturing tools

Click here to view the SPLP Corporate Presentation

Advisor Access spoke with Jack Howard, President of Steel Partners Holdings.

Advisor Access: Why are Steel Partners’ Preferred units an attractive investment vehicle?

Jack Howard: With the solid foundation of Steel Partners Holdings, we believe our Preferred units, with a nine-year term and paying 6% quarterly cash distributions, are highly attractive. They offer solid returns, currently yielding about 9%, with two upcoming redemptions, one in 2020 and the other in 2026. Particularly in today’s market environment, we look at the Preferreds as a conservative investment vehicle with very nice upside.

AA: Let’s talk about that foundation. Please describe what Steel Partners Holdings does.

JH: Steel Partners Holdings is a holding company with three principal business segments. Our largest, Diversified Industrial, represented about 84% of our total revenues in 2017…

AA: How do you best describe the company’s growth strategy? What kinds of companies are you looking to acquire?

JH: We look both to growing organically and by acquisition…

AA: What is the culture like at Steel Partners?

JH: We are very conscious of culture, and over the years have created what we believe to be a unique environment for our 4,800-plus member global team…

AA: Tell us about Steel Partners common units?

JH: Of course, I am admittedly biased in my belief that our common units are highly undervalued. But there are numerous and diverse components to Steel Partners Holdings…

Read the complete answers to these questions and the full, in-depth interview with Steel Partners Holdings President Jack Howard HERE.

About Advisor Access:

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Steel Partners Holdings has paid Advisor Access a fee to distribute this email. Jack Howard had final approval of the content and is wholly responsible for the validity of the statements and opinions.


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Rick Baggelaar