QUANTUMONLINE.COM SECURITY DESCRIPTION: DCP Midstream, LP, 7.95% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units, liquidation preference $25 per unit, redeemable at the issuer's option on or after 10/15/2023 at $25 per unit plus accrued and unpaid dividends, and with no stated maturity. Cumulative distributions of 7.95% per annum ($1.9875 per annum or $0.496875 per quarter) will be paid quarterly on 1/15, 4/15, 7/15 10/15 to holders of record on the record date that will be the first Business Day of the month prior to the Payment Date (NOTE: the ex-dividend date is one business day prior to the record date). On and after 10/15/2023, distributions on the Units will accumulate at a percentage of the $25.00 liquidation preference equal to an annual floating rate of the three-month LIBOR plus a spread of 4.882%.
Holders of the Preferred Units will receive specific tax information from the company, including a Schedule K-1 which generally would be expected to provide a single income item equal to the preferred return (see page S-44 of the prospectus for details).
At any time prior to 10/15/2023, within 120 days following the occurrence of a Ratings Event the issuer may redeem the Units at a redemption price in cash per Series C Preferred Unit equal to $25.50 (102% of the liquidation preference of $25.00), plus an amount equal to all accumulated and unpaid distributions (see prospectus for further information). Upon the occurrence of a Change of Control Triggering Event the issuer may redeem the Units within 120 days after the first date on which such Change of Control Triggering Event occurred, by paying $25.00 per Series C Preferred Unit, plus all accumulated and unpaid distributions (see prospectus for further information).
This security was rated as B1 by Moody’s and B by S&P at the date 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.