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Preferred Stock
3 Months Ended
Mar. 31, 2013
Preferred Stock [Abstract]  
Preferred Stock
Note 15. Preferred Stock
 
On February 21, 2013, we sold 250,000 shares of our 9.50% Series A Cumulative Redeemable Perpetual Preferred Stock, $1.00 par value per share, with a liquidation preference of $100.00 per share.
Subject to the declaration of dividends by our Board of Directors, cumulative dividends on the preferred stock will be paid at a rate of 9.50% per annum of the $100.00 liquidation preference per share, starting from the date of original issue, February 21, 2013. Dividends accumulate quarterly in arrears on each January 30, April 30, July 30 and October 30, beginning on April 30, 2013. However, the dividends are payable only if declared by our board of directors and must come from funds legally available for dividend payments. On April 10, 2013, the Board of Directors declared a dividend of $1.79 per share on our Series A Preferred Stock which was paid on April 30, 2013. As of March 31, 2013, we had no accumulated unpaid dividends.
If we do not pay dividends in full on the Series A Preferred Shares on any two dividend payments (whether consecutive or not), the per annum dividend rate will increase by an additional 2.00% per $100.00 stated liquidation preference, or $2.00 per annum, per Series A Preferred Share on and after the day following such second dividend payment date. On each subsequent dividend payment date on which cash dividends on the Series A Preferred Shares shall not be declared and paid, the annual dividend rate payable on the Series A Preferred Shares shall increase by an additional 2.00% per annum per $100.00 stated liquidation preference per Series A Preferred Share, up to a maximum annual dividend rate on the Series A Preferred Shares of 19.00%. The dividend rate will reset to the original dividend rate of 9.50% once all accrued but unpaid dividends on the Series A Preferred Shares have been paid for three consecutive dividend payment dates. Commencing on April 30, 2018, we may redeem the Series A Preferred Shares in whole or in part at a cash redemption price of $100.00 per share plus any accrued and unpaid dividends.
Net proceeds from the issuance of preferred stock were $23.4 million, net of underwriter discounts and related costs totaling $1.6 million.