There is one caveat to mention: SATS has a floating liquidation preference that adjusts based on recent market prices. If SATS trades at $115, its liquidation preference can rise toward $115, temporarily increasing the economic claim held by preferred shareholders. However, liquidation preference can also reset downward. The formula references the previous trading day’s closing price during periods surrounding new issuance and the average closing price over the preceding 10 trading days, subject to a $100 floor. If SATS subsequently trades at $100 for 10 trading days, its liquidation preference returns to $100.
There is one caveat to mention: SATS has a floating liquidation preference that adjusts based on recent market prices. If SATS trades at $115, its liquidation preference can rise toward $115, temporarily increasing the economic claim held by preferred shareholders. However, liquidation preference can also reset downward. The formula references the previous trading day’s closing price during periods surrounding new issuance and the average closing price over the preceding 10 trading days, subject to a $100 floor. If SATS subsequently trades at $100 for 10 trading days, its liquidation preference returns to $100.