Strive Utilizes Perpetual Preferred Equity to Restructure Debt
- Strive priced its Variable Rate Series A Perpetual Preferred Stock SATA at $90 per share, raising over $150 million.
- The offering allows for the issuance of up to 2.25 million SATA shares through public and private exchanges.
- Proceeds will be used to pay down Semler Scientific’s $90 million in convertible debt due in 2030.
- SATA shares carry a variable dividend of 12.25% and have no maturity or conversion feature, improving leverage metrics.
- Strategy holds approximately $8.3 billion in outstanding convertible notes with significant maturities ahead.
Strive’s approach of converting fixed-maturity obligations into perpetual preferreds may serve as a model for Strategy, which faces considerable future maturity risks with its own convertible debt portfolio.
The use of preferred equity could help mitigate Strategy’s $8 billion debt challenge while providing flexibility and improved financial metrics for Strive’s balance sheet.
