Quarterly Income Preferred Securities

Quarterly 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 QUIPS. The proceeds from QUIPS are lent to the partnership's parent company. These securities thus combine aspects of stocks and bonds; they mature on a quarterly basis and usually have a par value of $25. Returns on MIPS come out of the partnership's pretax earnings, and, therefore, can result in tax advantages.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Quarterly Income Preferred Securities (QUIPS)

Preferred stock that represents interest in a limited partnership formed for the sole purpose of lending proceeds of the equity issue to the parent company. Dividends to holders of QUIPS are paid from tax-deductible interest paid by the parent corporation.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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Equipment rental company United Rentals Inc (NYSE:URI) is to redeem its convertible quarterly income preferred securities and convertible subordinated debentures, the company said on Monday.
The redemption includes the entire issue of FPC Capital I 7.10 percent Cumulative Quarterly Income Preferred Securities (NYSE: FPCPRA), with a face value of USD300m.
announced last week the redemption by Entergy Arkansas Capital I of all the $60 million aggregate liquidation amount of its 8.5 percent Cumulative Quarterly Income Preferred Securities (QUIPS) at a price equal to $25 per QUIPS plus accumulated and unpaid distributions to the redemption date of Nov.
Equipment rental company United Rentals Inc (URI) (NYSE:URI) announced on Tuesday its plans for a partial redemption of convertible quarterly income preferred securities issued by its subsidiary (the Trust) and convertible subordinated debentures.
Net proceeds from the proposed offerings will be used for the retirement of existing indebtedness - including a substantial part of outstanding principal amount of the convertible subordinated debentures underlying 7.75% Convertible Quarterly Income Preferred Securities of CMS Energy Trust I - through redemption, open market repurchases, tender offers or private agreements, and for general corporate purposes.

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