QUANTUMONLINE.COM SECURITY DESCRIPTION: MicroStrategy Inc Variable Rate Series A Perpetual Stretch Preferred Stock liquidation preference $100 per share, callable at the issuer's option,at $101 per share plus accrued and unpaid dividends, and with no stated maturity . Variable rate distributions are paid monthly on the last calendar day of each month to holders of record on the 15th calendar day of the month in which such Regular Dividend Payment Date occurs. (NOTE: the ex-dividend date is the record date). The variable rate distributions will have an initial rate of 9.00% and may be adjusted by the issuer for any dividend period as long as it is not reduced more than .25% more than the last dividend period and the rate is not lower than the monthly SOFR per annum rate (see prospectus for more details).
Dividends paid by this preferred security are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and are also eligible for the dividends received deduction for corporate holders (see page S-52 of the prospectus for further information).
The Company may redeem the Preferred Shares at $100 (100%) of their principal amount plus accrued and unpaid dividends if a tax event occurs. (see prospectus for further information).
Upon the occurrence of a change of control resulting in the common shares of the surviving entity no longer being listed on the NYSE, the AMEX or the Nasdaq exchanges and the company has provided notice that they intend to redeem the preferred shares as a result of the change of control, the holder will have the right to require the redemption of some or all of their preferred shares at $100 (100%) of their principal amount plus accrued and unpaid dividends.
This security was not rated by Moody’s or S&P at the time of its IPO. In regard to the payment of distributions and upon liquidation, the preferred shares rank junior to the company's senior debt, junior to the company's MicroStrategy, Inc.10.00% Series A Perpetual Strike Preferred Stock 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.
