Prospectus excerpt: We are offering 1,000,000 shares of our 6.25% Series B Cumulative Convertible Preferred Stock, par value $0.01 per share, referred to as our Series B Preferred Stock. We will pay cumulative dividends on the Series B Preferred Stock from and including the date of original issuance, in the amount of $1.5625 per share each year, which is equivalent to 6.25% of the $25.00 liquidation preference per share. Dividends on the Series B Preferred Stock will be payable quarterly in arrears, beginning on January 25, 2007. Our only other preferred stock outstanding as of the date of this prospectus supplement is 1,875,500 shares of our 8.625% Series A Cumulative Preferred Stock, referred to as our Series A Preferred Stock, with a liquidation preference of $25.00 per share. The Series B Preferred Stock will rank on parity with the Series A Preferred Stock.
Holders may convert the Series B Preferred Stock into shares of our common stock subject to certain conditions. The conversion rate will initially be 2.3809 shares of common stock per share of Series B Preferred Stock and is equivalent to an initial conversion price of $10.50 per share of common stock, which represents a 17.85% premium over $8.91 per share, the last reported sales price of our common stock on January 25, 2007. The conversion rate will be subject to adjustment upon the occurrence of specified events. See ôDescription of Series B Preferred StockùConversion Rightsö beginning on page S-27 of this prospectus supplement.
If certain fundamental changes occur, holders may require us in certain circumstances to repurchase all or part of their Series B Preferred Stock. See ôDescription of Series B Preferred StockùPurchase of Series B Preferred Stock Upon a Fundamental Changeö beginning on page S-33 of this prospectus supplement. In addition, if a holder elects to convert the Series B Preferred Stock in connection with a fundamental change, we will pay, to the extent described in this prospectus supplement, a make whole premium by increasing the conversion rate applicable to such Series B Preferred Stock. See ôDescription of Series B Preferred StockùAdjustment to Conversion Rate Upon Certain Fundamental Changesö beginning on page S-32 of this prospectus supplement.
On or after January 25, 2012, we may, at our option, cause the Series B Preferred Stock to be automatically converted into that number of shares of common stock that are issuable at the then prevailing conversion rate. We may exercise our conversion right only if, for 20 trading days within any period of 30 consecutive trading days (including the last trading day of such period), the closing price of our common stock equals or exceeds 130% of then prevailing conversion price of the Series B Preferred Stock. Investors in our Series B Preferred Stock will generally not have voting rights, but will have limited voting rights if we fail to pay dividends for six or more quarters (whether or not consecutive) and under certain other circumstances.