$Exela Technologies (XELA.US)$ need help understanding the t...

ZnWC : Option 1: Tender shares for preferred stock: For each 20 shs of common stock tendered, holders will receive 1 share of 6.00% Series B1 Cumulative Convertible Perpetual Preferred Stock having a liquidation preference of $25.00 per share of Series B Preferred stock (an effective price of 1.25 USD per Common Stock).
Does it means 20 share worth USD25 - USD 1.25 per share?

Carrot123 OP : For me I got away from investing a while back so I don’t really know what’s going on with the stock, but I hope to find out the answer too

RainingEyeS : I also keen to know about this tender. Anyone can explain?

Roy S : Hopefully I could share some of my digging when going thru the first round of preferred shares tender Series B ( $EXELA TECHNOLOGIES INC 6% SER B CUM CONV PERP PFD (XELAP.US)$ ). Started with value $12.50 per share but now floating between $7.5 -$8.50 average which I notice the floating relates quite abit with XELA shares.
The shares of series B or B1 will be valued at a $25 if the company goes bust. Preferred shares should have the priority on the payout compared to common shares holders (by right) .
Pros: XELAP issues 6% of the dividend but still not sure based on the current share value or $25 liquidation value.
Cons: Not much trading on the XELAP therefore trading volume is really low.

I would say this tender is trade wait for dividend and forget about it kind of investment .
Hope this helps.

Wessex Roy S :

huathuatyes : better to exchange?