Blueknight Energy Partners LP Series A Preferred Units

This is an odd duck preferred. Per the most recent 10K I reviewed (for year ending 12/31/2018) there are just over 35 million Series A Preferred units outstanding. 52% of the preferred A units are held by Ergon which relates to a transaction in 2016 where Ergon bought the BlueKnight general partner. While the Series A shares are not called convertible they are in fact convertible. Directly from the prospectus–The Series A Preferred Units are convertible in whole or in part into common units at the holder’s election. The number of common units into which a Series A Preferred Unit is convertible is equal to (i) $6.50 divided by (ii) the Conversion Price. The Conversion Price is an amount equal to the volume-weighted average trading price per common unit during the 20 consecutive trading days ending on September 28, 2011; provided, that the Conversion Price shall be no greater than $6.50 and no lower than $5.50. In addition, under certain circumstances, we can convert all of the Series A Preferred Units into common units.

There does not appear to be an early redemption period available to Blueknight




BKEPP
BKEP
NA
10/25/2010
Anytime
None
35,125,000
0
11.00%
$6.50
Yes
No
0.17875
FEB, MAY, AUG, NOV
1
FEB, MAY, AUG, NOV
14
NR
D
NR