Valuation of non-publicly traded preferred shares

Valuation of non-publicly traded preferred shares

Valuation of Illiquid Stock Units - Preferred Stock Tender

Stout provided transaction advisory services related to a preferred stock tender offer of a publicly traded oil and natural gas company. The preferred shares being tendered were convertible into both common units (publicly traded) and subordinated units (not publicly traded), and Stout was engaged to value the illiquid subordinated units. The subordinated units are junior in cash flow preference and represent a derivative of the company’s common units.