Preferred Capital Securities

$1.5B Offering Overview


 

Capital Preservation – Growth & Income


Offering Summary

The Offering

A Preferred Stock & Warrant Offering designed to potentially provide investors with preservation of capital, steady income and growth.

The offering Unit

One share of Preferred Stock & one Warrant to buy 20 shares of Common Stock.

Offering Size

$1.5 Billion

Dealer-Manager

Preferred Capital Securities, LLC


Series A Redeemable Preferred Stock

Dividend Rate

6% annualized dividend, intended to be paid monthly. There are no assurances the dividend will be met.

Stated Value

$1,000 per share

LIQUIDITY

Investor has the right to redeem the Preferred Stock at stated value, subject to a five year declining redemption fee.

 

Five Year Declining Redemption Fee

Redemption price:
• During year one, 100% of the stated value less 13% reception fee, plus any accrued but unpaid dividends.
• During years two and three, 100% of the stated value less 10% redemption fee, plus any accrued but unpaid dividends.
• During year four, 100% of the stated value less 5% redemption fee, plus any accrued but unpaid dividends.
• During year five, 100% of the stated value less 3% redemption fee, plus any accrued but unpaid dividends.

 

Risk Mitigation

The Preferred Stock ranks senior to the Common Stock with respect to payment of dividends.


Common Stock Warrant

Rights

Warrant grants the investor the right to purchase Common Stock at a fixed price.

Strike Price

20% premium to the current market price per
share of our common stock on the date of issuance of the Warrant.

Exercisable after 1 year.

Maturity

Expires after 4 years.

Transferability

Detachable and fully transferrable

The warrant provides the investor an opportunity to participate in any appreciation in PAC’s Common Stock price above the strike price. There can be no assurance that PAC’s Common Stock price will appreciate.

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