Less than a week after Strategy ( MSTR ) reported third-quarter earnings and hinted at the launch of an international perpetual preferred stock, the company has launched Stream ( STRE ), a euro-denominated perpetual preferred security, the company said Monday.
STRE will be issued at 100 euros ($115) per share with a 10% annual dividend paid quarterly in cash, STRE targets professional and institutional investors in the European Economic Area (EEA) and will list on the Euro MTF Luxembourg, clearing through Euroclear and Clearstream.
If dividends are not paid, they are compounded quarterly, with the rate increasing by 100 basis points per period up to a maximum of 18%. If the Strategy fails to declare a dividend, it must issue a deferral notice and use commercially reasonable efforts over 60 days to raise funds through the sale of junior securities such as STRK or STRD to cover deferred payments.
STRE ranks senior to STRK, STRD and MSTR common stocks, but junior to STRF, STRC and debt. It is non-callable except under unfavorable tax conditions or if less than 25% of the shares remain outstanding and investors can demand redemption after a “fundamental change”. The liquidation preference is adjusted daily to the greater of the specified amount of 100 euros, the previous day’s market price or the 10-day average, linking its value to the trading result.
The revenue will support bitcoin acquisitions and general corporate purposes, in addition to no voting rights.
