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TWA proposed and preferred equity financing in large measure, but Toolco most often insisted on financing new equipment through credit arrangements.
As part of a "strategic relationship," Dow will receive a 3percentt preferred equity stake in Millennium Cell and have the right to buy as much as $5 million in additional equity, the companies said.
If the state is determined to keep the industry out of Chapter 11, it should set up a special fund and demand preferred equity to deter shareholders in other industries from asking for money.
One is called a PET (preferred equity traded) bond.
And with debt remaining elevated vs. management's targets, distribution coverage below targets and Plains' preferred equity converting to cash-pay next year, he isn't predicting any distribution growth.
These so-called PET bonds (preferred equity traded bonds) are actually corporate-backed trust certificates issued by Lehman Brothers and trade under the ticker symbol CDC.
Headquartered in Uniondale, New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in Fannie Mae, Freddie Mac, and other government-sponsored enterprises, as well as CMBS, bridge, mezzanine, and preferred equity lending.
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We believe that these new trust certificate-type bonds or preferred equity-traded bonds are an attractive retail product.
It has already drawn rebukes on Capitol Hill, even though Goldman has repaid the government's $10 billion preferred-equity investment.
In a typical start-up deal, for example, the venture capital fund will invest $3 million in exchange for a 40% preferred-equity ownership position, although recent valuations have been much higher.
The $25 billion preferred-equity stake that the Fed owns in two of AIG's insurance subsidiaries is also pretty safe: they may be worth as much as double that sum.The danger to taxpayers comes in two forms.
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