On 7/16/2021 the company sold 308,487 shares @ $20.00/share
Redeemable only if the price of the commons shares trade at more than 130% of conversion price ($92.20) for 20 tradings days during a 30 day consecutive period
11/1/2020 conversion is now at $81.81
On 321/2022 all shares converted into common shares. The conversion was triggered by the strong share price of the common.
These shares were sold by AMG Capital Trust and the debentures, maturing on 10/15/2037 are the sole asset of the trust. The dividends of these trust preferred shares are NOT qualified for preferential tax treatment. The shares are convertible at anytime, at the option of the owner, into .25 common shares of Affiliated Managers Group (AMG). On or after 10/16/2012, if the price of the common shares exceeds 130% of the conversion price ($200/share) for 20 of 30 consecutive days the company may, at their option, force conversion of the preferred shares. Given that the common shares are trading around $65 on 5/5/2020 it is highly unlikely that the company will ever be able to force conversion.
Distributions (other than contingent distributions) may be deferred for up to 20 consecutive quarterly periods, but not beyond the maturity date of the junior subordinated convertible debentures held by the trust. The junior subordinated convertible debentures will mature on October 15, 2037.
Kinder Morgan is the parent corporation as they purchased El Paso Energy
Capital Trust I (Trust I), is a 100%-owned business trust that as of December 31, 2018, had 4.4 million of 4.75% trust convertible preferred securities outstanding (referred to as the Trust I Preferred Securities). Trust I exists for the sole purpose of issuing preferred securities and investing the proceeds in 4.75% convertible subordinated debentures, which are due 2028. Trust I’s sole source of income is interest earned on these debentures. This interest income is used to pay distributions on the preferred securities. We provide a full and unconditional guarantee of the Trust I Preferred Securities. There are no significant restrictions from these securities on our ability to obtain funds from our subsidiaries by distribution, dividend or loan. The Trust I Preferred Securities are non-voting (except in limited circumstances), pay quarterly distributions at an annual rate of 4.75%, carry a liquidation value of $50 per security plus accrued and unpaid distributions. The Trust I Preferred Securities outstanding as of December 31, 2018 are convertible at any time prior to the close of business on March 31, 2028, at the option of the holder, into the following mixed consideration: (i) 0.7197 of a share of our Class P common stock; and (ii) $25.18 in cash without interest. We have the right to redeem these Trust I Preferred Securities at any time.
Shares will be converted on 9/1/2021. The initial conversion rate was 1.5291 shares of common stock if the common stock is trading at $32.70 or above. If the common stock is trading below $27.25 the conversion is 1.8349 shares of common. For market prices between $27.25 and $32.70 the conversion will be the converted at the rate of $50 divided by the market price. Because of the mandatory conversion we post the preferred and commons stock charts below.
There is no available electronic Propspectus for this older issue