Equity Transactions

6 Months Ended

Jun. 30, 2020

Class of Stock Disclosures [Abstract]

Equity Transactions

Equity Transactions

Stock Repurchase

During the six months ended June 30, 2020 and 2019, the Company repurchased 734,967 and 1,037,262 shares of the Company’s outstanding common stock at a cost of $83.1 million and $100.7 million, exclusive of commissions, respectively, leaving $403.2 million remaining under the total repurchase authorization as of June 30, 2020.

The timing and the amount of future repurchases will depend on market conditions, the Company’s financial condition, results of operations and liquidity and other factors.

Issuance of Mandatory Convertible Preferred Stock (“MCPS”)

In March 2018, the Company issued 2,875,000 shares of the MCPS at a public offering price of $100.00 per share. The net proceeds from the sale of the MCPS was $276.4 million after deducting the underwriting discounts and offering expenses.

Each outstanding share of MCPS will convert automatically on March 15, 2021 into between 0.9385 (the “minimum conversion rate”) and 1.1262 shares of common stock, subject to customary anti-dilution adjustments. At any time prior to March 2021, holders may elect to convert each share of MCPS into shares of common stock at the minimum conversion rate or in the event of a fundamental change at the specified rates as defined in the Certificate of Designations of the MCPS.

Dividends on our MCPS will be payable on a cumulative basis when, as and if declared, at an annual rate of 6.50% of the liquidation preference of $100.00 per share. The Company may pay declared dividends in cash or, subject to certain limitations, in shares of the Company’s common stock, or in any combination of cash and shares of the Company’s common stock quarterly, commencing in June 2018 and ending in March 2021. No dividend or distribution may be declared or paid on common stock or any other class or series of junior stock, and no common stock or any other class or series of junior stock or parity stock may be purchased, redeemed or otherwise acquired for consideration unless all accumulated and unpaid dividends on the MCPS for all preceding dividend periods have been declared and paid in full, subject to certain limited exceptions. The Company paid preferred stock dividends of $4.6 million for the three months ended June 30, 2020 and 2019. The Company paid preferred stock dividends of $9.3 million for the six months ended June 30, 2020 and 2019.