In other words, these companies have mandatorily
Our ability to use mandatorily
convertible preferred stock to partially fund the acquisition of two LR1 product tankers suggests that our equity is attractive as an acquisition currency.
Those contracts and mandatorily
redeemable financial instruments are subsequently measured at the present value of the amount to be paid at settlement (discounted at the rate implicit at inception), if both the amount of cash and the settlement date are fixed, or, otherwise, at the amount that would be paid under the conditions specified in the contract if settlement occurred at the reporting date.
The shares that were underlying the Mandatorily
Redeemable Convertible Preferred Stock will remain subject to the IPO lock-up agreements, even upon the registration statement being declared effective.
The acquisition price, considering the use of mandatorily
convertible preferred stock, is well below the current charter-free value of the vessels.
Whether an instrument like mandatorily
redeemable preferred stock is classified as a liability or as equity obviously affects reported amounts of liabilities and equity and related summary indicators, such as the debt/equity ratio and the asset/equity ratio.
Frangou continued, "Using mandatorily
convertible preferred stock to fund cash requirements strengthens our balance sheet, as we conserve more than $165.
Although the preferred shares can be converted at any time, they are mandatorily
convertible nine years from the issuance date.
17 per share on a fully diluted basis, which included the effect of $588,000 in interest and a premium paid on the redemption of mandatorily
redeemable preferred stock in the first quarter.
The conversion of $889 million of mandatorily
convertible preferred stock into common equity on July 3, 2006 will not affect Xerox's outstanding debt figure or credit metrics since Fitch previously awarded 100% equity credit to this issue.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to (i) our having no further interest or premium obligations for mandatorily
redeemable preferred stock; and (ii) our expectations of net revenue and GAAP and pro forma net income per share on a fully diluted basis for the full year, fiscal 2004.
CHICAGO -- Fitch Ratings has affirmed Schering-Plough Corporation's (Schering-Plough) 'A-' Issuer Default Rating (IDR), senior unsecured debt and bank loan ratings, 'BBB+' mandatorily
convertible preferred stock rating, and the 'F2' commercial paper rating.