preferred shares carried at liquidation value
The Company has 2,000 Series B Preferred shares authorized, all of which are issued and outstanding.
These shares have a par value of $120 per share and a liquidation preference of $100,000 per share.
Holders of these preferred shares shall be entitled to receive, in preference to the holders of common
shares, non-cumulative cash dividends at a variable rate equal to one-month LIBOR plus 1.00% per annum for periods prior to December 9, 2009 and at LIBOR plus 2.00% per annum thereafter, in each case calculated on an actual/360 day basis, when and if declared by the Board of Directors of the Company.
The holders of the preferred shares are not entitled to any voting rights and their consent is not required for taking any corporate action. Subject to certain requirements, the preferred shares may be redeemed, in whole or in part, at the option of Syncora Guarantee at any time or from time to time for cash at a redemption price equal to the liquidation preference per share plus any accrued and unpaid dividends thereon to the date of redemption without interest on such unpaid dividends.
