Monthly Income Preferred Securities


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Monthly Income Preferred Securities

Preferred stock representing a portion of ownership in a limited partnership. The limited partnership is a subsidiary of another company and exists only for the purpose of issuing the MIPS. The proceeds from MIPS are lent to the partnership's parent company. These securities thus combine aspects of stocks and bonds; they mature on a monthly basis and usually have a par value of $25. Returns on MIPS come out of the partnership's pretax earnings.

Monthly Income Preferred Securities (MIPS)

A type of preferred stock issued by a special-purpose partnership with the intent of lending the proceeds of the stock issue to a corporate parent. Interest received by the partnership is used to pay dividends to the preferred stockholders. The relatively complicated structure of such a stock issue provides a tax deduction to the corporate parent, which pays interest rather than dividends. MIPS offer higher yields than regular preferred stock and can generally be redeemed in five years.
References in periodicals archive ?
7 per cent* respectively, when the Monthly Income Preferred Securities are treated as debt rather than equity).
Financing costs decreased 4 million dlrs (23%) to 14 million dlrs because of lower short-term interest rates and the reduced amount of short-term debt and Monthly Income Preferred Securities (MIPS) outstanding.
The ratings affected are: senior unsecured notes at `BBB'; premium equity participation security units (PEPS) and monthly income preferred securities (MIPS) at `BBB-', and commercial paper at `F2'.
14 million shares of its 6 percent Convertible Monthly Income Preferred Securities ("Convertible MIPS") were converted into approximately 7 million shares of The St.
s (TMK's) 'A' senior debt rating, its 'F1' rating of Torchmark's commercial paper, and its 'A-' rating on the monthly income preferred securities (MIPS) issued by the company's subsidiary, Torchmark Capital L.
Paul Capital") announced today that it provides notice to the holders of its 6% Convertible Monthly Income Preferred Securities (the "Preferred Securities") that, pursuant to the terms of the Preferred Securities and the Amended and Restated Limited Liability Company Agreement of St.
UCU's ratings are as follows: unsecured senior notes at 'BBB' (Triple-B); premium equity participation security units (PEPS) and monthly income preferred securities (MIPS) at 'BBB-' (Triple-B-Minus); and commercial paper at 'D-2' (D-Two).
0 million shares of its 6% Convertible Monthly Income Preferred Securities ("Convertible MIPS") were converted into 6.

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