In your comment, you mentioned that the preferred stock in question is ALIN-A (Altera Infrastructure L.P., 7.25% Series A Cumulative Redeemable Preferred Units). According to the prospectus, the company will pay $25 per unit when it decides to call the issue.
The problem is that the company is not likely to call the preferred stock anytime soon. Here are some reasons:
- This is a perpetual preferred stock. The company can refuse to call the preferred stock for as long as they want.
- Dividends have been suspended, because the company is unable to pay dividends.
- The company's financial results are poor. Refer to its Form 6-K filed on 2021-07-29.
- The company has trouble paying its senior debt. Refer to its other Form 6-K filed on 2021-07-29, which announced a debt restructuring to avoid bankruptcy or insolvency. ALIN-A ranks lower than senior debt, so if the company is unable to pay off its debt, it won't be able to pay its preferred stockholders either.
- The company pays 8.50%-11.50% interest on its senior debt, which is higher than the 7.25% dividends on its preferred stock. There is no incentive for the company to eliminate its preferred stock in such a situation.
- ALIN-A's issue size is $150 million, a substantial sum for the company at the moment. It simply does not have the money to call the preferred stock.
As a result of all the above, ALIN-A fell from $24 to $9 overnight on 2021-07-29. The preferred stock will not be called anytime soon.