Based on its Prospectus, the Series 1 Preferred Shares has a coupon rate of 7.025% per annum, with a call option on its seventh anniversary, and a maximum step up rate of 487.5 basis points if the call option is not exercised. With the offering, Megawide will continue to maintain its comfortable debt-to-equity (D/E) ratio and be able to accommodate future capital raising. The Company continued to show improvement on its D/E ratio at the Parent level as of end June 2021, registering 1.1x versus 1.15x at the end of December 31, 2020 and against the covenant of 2.33x agreed with its lenders. "Part of our financial game plan is to streamline our balance sheet to support our expansion programs, especially our pivot to infrastructure. With a manageable D/E ratio, we will have more flexibility to raise funds to pursue more projects in the infrastructure space, which we think will be critical in jumpstarting the economy," said Edgar Saavedra, Megawide's Chairman and CEO.