Preferred Stock

12 Months Ended

Dec. 31, 2022

5. Preferred Stock

Holders of the Series A Preferred Stock have no voting rights, except in specific circumstances of delisting or in the case the dividends are in arrears as specified in the Series A Preferred Stock Certificate of Designations. The Series A Preferred Stock accrued dividends at an annual percentage rate of 8.75% through April 14, 2022. The floating rate period for the Series A Preferred Stock began on April 15, 2022. The dividend on the Series A Preferred Stock will accrue at an annual rate equal to the sum of (a) Three-Month LIBOR (if it then exists), or an alternative reference rate as of the applicable determination date and (b) 6.578%, based on the $25.00 liquidation preference per share of the Series A Preferred Stock. The liquidation preference provisions of the Series A Preferred Stock are considered contingent redemption provisions because there are rights granted to the holders of the Series A Preferred Stock that are not solely within our control upon a change in control of the Company. Accordingly, the Series A Preferred Stock is presented between liabilities and the equity sections in the accompanying condensed consolidated balance sheets. As of April 15, 2022, we have the option to redeem our Series A Preferred Stock.

During the year ended December 31, 2022, we paid $7.6 million in dividends to holders of the Series A Preferred Stock. As of December 31, 2022, we had accrued $2.4 million related to dividends to holders of the Series A Preferred Stock. This dividend was paid on January 17, 2023. During the year ended December 31, 2021, the Company paid $7.8 million in dividends to holders of the Series A Preferred Stock and had accrued $1.9 million as of December 31, 2021.

On January 18, 2023, the Company declared a quarterly cash dividend in the amount of $0.71298 per share of Series A Preferred Stock. This amount represents an annualized dividend of $2.8519 per share. The dividend will be paid on April 17, 2023 to holders of record on April 1, 2023 of the Series A Preferred Stock.

A summary of our preferred equity balance for the years ended December 31, 2022 and 2021 is as follows:


	(in thousands)









Balance at December 31, 2020	$	87,288
Repurchase of Series A Preferred Stock	—
Accumulated dividends on Series A Preferred Stock	—
Balance at December 31, 2021	$	87,288
Repurchase of Series A Preferred Stock	—
Accumulated dividends on Series A Preferred Stock	425
Balance at December 31, 2022	$	87,713