Importantly, for covenant calculation purposes DCP's
preferred equity is given 100% equity treatment so the issuance of
preferred equity will help improve liquidity and leverage as the proceeds are expected to be used to pay down debt.
Trinity Street Capital Partners focuses on non-recourse, high leverage senior & subordinate debt and
preferred equity, with investments starting at $5MM on income producing retail, office, industrial, multifamily, manufactured housing communities, self-storage and hospitality properties located throughout the continental United States.
Mubadala and Eike Batista, the founder of EBX Group of Brazil, in a statement announced the strategic partnership, under which Mubadala will invest $2 billion in exchange for a 5.63 per cent
preferred equity interest in Centennial Asset Brazilian Equity Fund LLC and other offshore holding companies of Batista.
689 (1986), held that a liquidating corporation is deemed to distribute its property in the following order: (1) to creditors, (2) to
preferred equity holders, and (3) to common equity holders.
These equity investments substantially reduce the debt financing required to fund the acquisition, Dow has restructured the transaction to essentially pay the equivalent of $63 per share in cash, and $15 per share in face value of
preferred equity securities.
countries around the world have consistently reported the use of a variety of securities, including common equity,
preferred equity, convertible
preferred equity, debt, convertible debt, and combinations (in the U.S., VCs typically use convertible
preferred equity, and there is a tax bias in favor of that instrument in the U.S.).
According to American Capital, the investment will take the form of senior subordinated debt and
preferred equity, with Laminar Direct Capital L.P.
Chrysalis Ventures, a source of equity capital for growth companies in the Southeast and Midwest, led financing of the $4 million Series B
preferred equity investment.
said it is no longer in discussions with a private equity investor with respect to a potential
preferred equity investment in the company because it and the investor could not come to an agreement in terms.
And, overall, Citicorp raised $750 million in
preferred equity in 1991, only to write off $990 million in the third quarter alone.
Concurrently, the company issued 4,185,642 additional units out of its existing
preferred equity interests designated Class B fixed-to-floating rate cumulative redeemable perpetual preferred units, with a USD25.00 per unit liquidation preference, as payment of a portion of the purchase price for the Mesquite acquisition.
Financing for the acquisition includes a two-year, floating rate senior loan and a $1.1M
preferred equity component.