Less than a week after Strategy (MSTR) reported third-quarter results and signaled the issuance of international perpetual preferred stock, the company has brought to market Stream (STRE), a euro-denominated perpetual preferred stock, the company announced on Monday.
STRE will be issued at €100 ($115) per share, with a 10% annual dividend paid quarterly in cash. STRE is aimed at professional and institutional investors in the European Economic Area (EEA) and will be listed on the EuroMTF Luxembourg via Euroclear and Clearstream.
Unpaid dividends will compound quarterly and the rate will increase by 100 basis points each period up to a maximum of 18%. If Strategy does not declare a dividend, it must issue a deferral notice and use commercially reasonable efforts over a 60-day period to raise funds through the sale of junior securities, such as STRK and STRD, to cover the deferred payment.
STRE is senior to STRK, STRD and MSTR common stock, but junior to STRF, STRC and debt. The shares are not callable unless there are adverse tax conditions or less than 25% of the shares outstanding, and investors could be required to buy them back after a “fundamental change”. The liquidation preference amount is adjusted daily by relating its value to the trading performance, whichever is greater: the displayed amount of 100 euros, the previous day’s market price, or the 10-day average.
Revenue supports Bitcoin BTC$103,930.55 In addition to having no voting rights, it cannot be used for acquisitions and general corporate purposes.
