Based on my calculations, I have a few questions. If they issued Class B preferred stock equal to 40% of the outstanding in order to receive the $350 million loan, then I understand why they raised the AS. However, this doesn't mean the OS has increased. The OS will only increase if the Class B series is converted, which may never happen if the company pays the loan back over the next several years.
Am I correct that the OS may not increase based on this deal. It will only increase if the shares are converted. Am I missing something?