QUANTUMONLINE.COM SECURITY DESCRIPTION: Compass Diversified Holdings, 7.250% Series A Non-Cumulative Preferred Shares, liquidation preference $25 per share, redeemable at the issuer's option on or after 7/30/2022 at $25 per share plus declared and unpaid dividends, and with no stated maturity. Non-Cumulative distributions of 7.25% per annum ($1.8125 per annum or $0.453125 per quarter) will be paid quarterly on 1/30, 4/30, 7/30 & 10/30 to holders of record on the record date that will be 1/15, 4/15, 7/15 & 10/15 respectively (NOTE: the ex-dividend date is one business day prior to the record date). The dividends are non-cumulative and if the board of directors does not declare a dividend or the company fails to pay a dividend declared by the board for any quarterly dividend period, the holder will not be entitled to receive any dividend for that quarterly period and the undeclared or unpaid dividend will not accumulate.
If a Tax Redemption Event occurs prior to 7/30/2022, the Company may cause the trust to redeem the Preferred Shares at a price of $25.25 per share (see prospectus for further details). If a Fundamental Change occurs the Company will be required to offer to repurchase the Preferred Shares at a purchase price of $25.25 per share, plus declared and unpaid distributions. If a Fundamental Change occurs and the Company does not give notice to repurchase or redeem all the outstanding Preferred Shares, the distribution rate per annum on the Series A Preferred Shares will increase by 5.00% (see prospectus for further information).
The trust is treated as a partnership for U.S. federal income tax purposes, and will issue a Schedule K-1 to holders of Series A Preferred Shares (see page S-13 of the prospectus).
This security was not rated by Moody’s or S&P at the time of its IPO. In regard to the payment of dividends and upon liquidation, the preferred shares rank junior to the company's senior debt, equally with other preferreds of the company, and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
