QUANTUMONLINE.COM SECURITY DESCRIPTION: RLJ Lodging Trust, $1.95 Series A Cumulative Convertible Preferred Stock, liquidation preference $25 per share, and with no stated maturity. Cumulative distributions of $1.95 per annum ($1.95 per annum or $0.4875 per quarter) will be paid quarterly on 1/31, 4/30, 7/31 & 10/31 to holders of record on the record date fixed by the board, not more than 60 days prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). The distributions will be the greater of $1.95 per annum or the dividend equal to the common stock dividend into which the Series A shares are convertible.
Dividends paid by preferreds issued by REITs are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders.
The preferred shares are convertible at any time, at the option of the holder, into 0.2806 shares of common stock, an initial conversion price of $89.09 per common share.
On and after its issue date, if the price of the common stock equals or exceeds the conversion price for 20 of any 30 consecutive trading days, the company may, at their option, cause the preferred shares to be converted into common shares or converted into cash at the then prevailing conversion price.
In regard to the payment of distributions 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.
