The premium was all by Magellan's design with the loyalty unit...

The premium was all by Magellan's design with the loyalty unit issue dates. It would have been very embarrassing for Magellan that after such a marketing push pre IPO that MGG trade at a discount to NTA. The supply side of the market for MGG is tight due to everyone waiting for their bonus units leading to increase in price. It is trading exactly where I thought it would as the value of units to many of the holders is $1.59 due to the upcoming 6.25% loyalty unit issue (1.50 x 1.0625). All those holders waiting on loyalty units are not going to part with their units for anything less. This also explains the very low volumes traded since IPO, which are entirely driven by the idiots on the buy-side happy to pay over NTA.

There will be an opportunity to buy MGG at NTA following loyalty unit issue but not a great discount as MGG will buy units back aggressively to hold up the price. Magellan has to keep the price at least at NTA due to their dividend discount policy. If the market price drops below a 5% discount to NTA, the dividend discount policy is no longer a win for holders.

MGG was designed to trade at a premium prior to issue of loyalty units and at NTA following the issue.