3 weeks Can someone translate this preferred share info Reddit      

What does this contract adjustment rate mean in layman's terms…

South Jersey Industries, Inc. 8.75% Equity Units, stated amount $50 per unit, initially consisting of Corporate Units which include a stock purchase contract and, initially, a 1/20, or 5%, undivided beneficial ownership interest in $1,000 principal amount of 2021 Series B 1.65% Remarketable Junior Subordinated Notes due 04/01/2029.

The stock purchase contract requires the holder to purchase for $50 a variable number of shares of South Jersey Industries, Inc. (NYSE: SJI) common stock no later than 4/01/2024 and pays a contract adjustment rate of 7.10% per annum.

Does this mean it pays 8.75% but then you owe 7.1% back?

I'm familiar with the rest and the conversion but have never seen a debt note restructured as a higher equity share.

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