Octagon Credit Investors

Octagon Credit Investors Cap Table Overview

The capitalization table (cap table) for Octagon Credit Investors shows the company's equity ownership structure, including all share classes, their liquidation preferences, and ownership percentages. This information is critical for investors evaluating secondary market opportunities.

Understanding Octagon Credit Investors Share Classes

Octagon Credit Investors has multiple share classes in its capital structure.

Liquidation Preferences Explained

Liquidation preferences determine the order in which shareholders receive proceeds in an exit event (acquisition, IPO, or liquidation). Investors with senior preferred shares are paid first, followed by junior preferred, and finally common shareholders. Understanding these preferences is essential for evaluating the potential return on secondary market purchases.

Cap Table FAQs

What share class should I buy on the secondary market?

Most secondary market transactions involve common stock or specific preferred series. Common stock typically has the most liquidity but sits lowest in the liquidation waterfall. Preferred shares offer downside protection but may have transfer restrictions.

How does Octagon Credit Investors's valuation affect share prices?

Octagon Credit Investors's current valuation of $214.1M divided by shares outstanding determines the implied price per share. However, different share classes may trade at premiums or discounts based on their rights and preferences.

Are preferred shareholders guaranteed their liquidation preference?

Liquidation preferences are only paid if there are sufficient proceeds from an exit event. In a down-round or low-value exit, preferred shareholders may receive less than their preference, or in some cases, convert to common to maximize their return.