Caliber Reduces Debt by $3.4M; Introduces 12% Yield Series AAA Preferred Stock
Caliber converted $1.9M of unsecured notes into Class A shares and $1.5M into Series AAA preferred stock, cutting debt by $3.4M in this program and $5.3M since October 2025. The new Series AAA preferred stock carries a 12% annual dividend and convertible tranches at $2.50, $3.50 and $4.50 per share.
1. Debt Reduction Program Progress
Caliber completed the second round of its Noteholder Conversion Program, converting $1.9 million of unsecured notes into Class A common shares and $1.5 million into Series AAA Convertible Preferred Stock. These actions reduced Caliber's corporate debt by $3.4 million in the current round and $5.3 million since October 2025.
2. Series AAA Preferred Stock Features
The Series AAA Convertible Preferred Stock carries a 12% annual cumulative dividend and is convertible in three tranches at $2.50, $3.50 and $4.50 per share of common stock. One third of each tranche can be converted at each price level, providing a pathway to equity at escalating prices.
3. Management Outlook
Management emphasized that debt reduction remains a priority as the company targets adjusted EBITDA and net operating income profitability in 2026. The Board also filed a resale registration statement to facilitate future transactions related to these conversions.