Participating preferred stock

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Participating preferred stock

Preferred stock that provides the holder with a specified dividend plus the right to additional earnings under specified conditions.

Participating Preferred Stock

A stock, entitling the bearer to part ownership in the issuing company, and also to a certain minimum dividend. The dividend paid may be higher than the minimum depending upon company performance. In any case, these dividends must be paid before any dividends are paid on common stock, and if a company is unable to pay dividends on participating preferred stock, stockholders have the right to force the liquidation of the company. Private equity and venture capital firms often use participating preferred stock as a means of financing their investments. Unlike most other preferred stock owners, participating preferred stockholders sometimes have voting rights in the company. See also: Cumulative preferred stock, Non-cumulative stock, Convertible stock.
References in periodicals archive ?
As previously announced, it is a condition to the closing of the merger transaction (as described in the Merger Agreement) that the Merger Agreement be approved by the affirmative vote of (i) the holders of at least 66 2/3% of the Company's Ordinary Shares and the Company's Cumulative Convertible Participating Preferred Shares (the "Convertible Preferred Shares") outstanding (voting on an as-converted basis), voting together as a single class, and (ii) a majority of the Company's Ordinary Shares (excluding generally any Ordinary Shares owned by the Investors, the Company or any of their respective affiliates (the "Owned Shares")), attending and voting at the Extraordinary General Meeting (whether in person or by proxy) (the "Requisite Shareholder Approval").
The Board of Trustees also declared a per share quarterly distribution on the Company's participating preferred shares of $0.
Each right will entitle shareholders to buy one one-thousandth of a share of a new series of junior participating preferred shares at a purchase price of $30, subject to adjustment.
The Company intends to issue a Notice to the Market containing the final results and the proposed timetable for the next steps to be taken concerning the Voluntary Conversion as soon as the final tabulation of the participating preferred shares and Preferred ADSs is completed.
8 million attributable to the beneficial conversion feature of the Convertible Cumulative Participating Preferred Shares issued on May 7, 2007 in calculating net loss available to ordinary shareholders for the purposes of earnings per share, in accordance with EITF Topic D-98.
CCA's software allows clients to evaluate and create securities-offering documents for deal structures including common equity, notes with equity kickers, participating preferred shares, and common equity with bank debt.
Participating preferred share holdings are presented as non-controlling interest in the consolidated financial statements of the Fund; however, management of the Fund have elected to include the shareholdings of the participating preferred shareholders in the calculation of free cash flow available for distribution as participating preferred shares receive distributions that are economically equivalent to those received by trust unitholders and participating preferred shares are exchangeable on a one-to-one basis for trust units of the Fund.
para]](1) The Actual POI Value and HPA Amount for each quarter since the issuance of the 5% Series A and 5% Series B Participating Preferred Shares are available on the Company's website on the "For Investors" page.
Aggregate distributions declared on weighted average trust units and participating preferred shares outstanding, including distributions on weighted average subscription receipts, totalled $27,101 and $75,976 for the three and nine months ended September 30, 2005, representing a payout ratio of 82.
Aggregate distributions declared on weighted average trust units and participating preferred shares outstanding, but excluding distributions on weighted average subscription receipts, totalled $25,702 and $47,700 for the three and six months ended June 30, 2005, representing a payout ratio of 77.
Aggregate distributions declared on weighted average trust units and participating preferred shares totalled $21,998 for the three months ended March 31, 2005, representing a payout ratio of 91.

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