Preferred Equity Structures/Model

May 30, 2023
by a searcher from Louisiana State University - E. J. Ourso College of Business in Houston, TX, USA
Does anyone have examples of preferred equity structures and/or model? Trying to better understand how they work and what to assume if you wanted to redeem the preferred equity after a couple of years.
from Northwestern University in New York, NY, USA
from University of Pennsylvania in Miami, FL, USA
1) preferred equity with return (8-12%) - non redeemable - likely a coupon that is accrues over time and you pay 100% of the equity + 100% of accrued coupon at exit. In addition, pref converts to common as well.
2) preferred equity with return (8-12%) - redeemable - you can pay down the principal over a short period of time. converts into 20-40% of common after all principal paid .