Less than a week after Strategy (MSTR) reported its third-quarter earnings and hinted at the launch of an international perpetual preferred stock, the company launched Stream (STRE), a euro-denominated perpetual preferred security, to the market, the company said Monday.
STRE will be issued at €100 ($115) per share with a 10% annual dividend payable quarterly in cash, STRE targets professional and institutional investors in the European Economic Area (EEA) and will be listed on Euro MTF Luxembourg, clearing through Euroclear and Clearstream.
If dividends are not paid, they are compounded quarterly, and the rate increases by 100 basis points per period to a maximum of 18%. If the strategy does not declare a dividend, it must issue a deferral notice and use commercially reasonable efforts for 60 days to raise funds by selling junior securities such as STRK or STRD to cover the deferred payments.
STRE is rated higher than STRK common stock, STRD and MSTR, but lower than STRF, STRC and debt. It is not redeemable except in adverse tax circumstances or if less than 25% of the shares remain outstanding, and investors can demand repurchase following a “fundamental change.” The settlement preference is adjusted daily to the greater of the declared amount of 100 euros, the market price of the previous day or the 10-day average, linking its value to the performance of the negotiation.
Profits will support bitcoin acquisitions and social purposes in general, in addition to not having the right to vote.
