Preferred Stock Channel
8% Series E Cumulative Convertible Preferred Stock (MHR.PRE)

Prospectus excerpt:  We are offering 1,000,000 depositary shares, each representing a 1/1,000th interest in a share of our 8% Series E Cumulative Convertible Preferred Stock, par value $0.01 per share, which we refer to as the "Series E Preferred Stock," and the shares of common stock issuable upon conversion of the Series E Preferred Stock. The shares of Series E Preferred Stock have a stated liquidation preference of $25,000.00 per share, which we refer to as the "stated liquidation preference," plus accrued and unpaid dividends (equivalent to a $25.00 stated liquidation preference per depositary share, plus accrued and unpaid dividends). Each depositary share, evidenced by a depositary receipt, entitles the holder, through the depositary, to a proportional fractional interest in all rights and preferences of the Series E Preferred Stock (including conversion, dividend, voting and liquidation rights). We previously issued 2,774,850 depositary shares, and the corresponding 2,774.85 shares of Series E Preferred Stock, in connection with an acquisition on November 2, 2012.

Dividends will begin to accrue on any shares of Series E Preferred Stock and depositary shares issued in this offering from (but excluding) the date of issuance. We anticipate that the record date for the initial partial dividend on the shares of Series E Preferred Stock and depositary shares issued in this offering will be January 15, 2013 and that the initial dividend payment will be made to holders of record as of that date on January 31, 2013. Dividends will begin to accrue on any subsequently issued shares of Series E Preferred Stock from (but excluding) the date of issuance, unless issued after the record date for a monthly dividend period, in which case dividends will begin to accrue on the first day of the next monthly dividend period. We anticipate that for each monthly dividend period, we will set the record date on or about the 15th day of the month and that the dividend payment date will generally be the last day of the calendar month. Dividends on the Series E Preferred Stock, when and as declared by the Board of Directors, will be in the amount of $2,000.00 per share each year (equivalent to $2.00 per depositary share each year), which is equivalent to 8.0% of the stated liquidation preference. The dividend rate will increase under certain circumstances described in this prospectus supplement.

The Series E Preferred Stock generally will have no voting rights but will have limited voting rights under certain circumstances as described in this prospectus supplement.

The Series E Preferred Stock has no stated maturity, and will not be subject to any sinking fund or other mandatory redemption. Each share of Series E Preferred Stock or depositary share may be converted, at any time, at the option of the holder, through the depositary, into a number of shares of our common stock at a conversion price of $8.50 per share (subject to anti-dilution adjustments in the case of stock dividends, stock splits and combinations of shares), as described in this prospectus supplement. In addition, at any time a "Change of Control," as defined in this prospectus supplement, occurs, and we do not elect to exercise our special redemption right described below, each share of Series E Preferred Stock may be converted, at the option of the holder, through the depositary, into shares of our common stock pursuant to a specified formula.

We may not redeem the Series E Preferred Stock before November 2, 2015, except in the limited circumstances described in this prospectus supplement.

Full Prospectus PDF »

Series:E
Alternate symbology:MHR-E, MHR-PE, MHRprE
Redeemable?:Yes
Call Date:11/2/2015 (Now Trading Post Call Date)
Perpetual?:Yes
Cumulative?:Yes
Conversion Ratio:2.941176471
Conversion Price:$8.50
Shares Offered:1,000,000
Liquidation Preference:$25
Original Coupon:8.00%
Pay Period:Monthly
CDx3 Compliance Rating: Learn MHR.PRE's Rating

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