Paragon Valuation Case Study

Preferred Stock Redemption

The recapitalization strategy, implemented by a US manufacturing subsidiary of a foreign conglomerate, involved a $250 million redemption of its outstanding 8.25% Preferred Stock, representing 50% of the total outstanding shares.  Paragon provided an opinion as to the fair market value of the redeemed shares.  Paragon also provided an opinion as to the fair market value of the subsidiary's Business Enterprise that provided an economic "wrap-around" valuation test of the concluded value of the Preferred Stock.  Paragon's valuation report was reviewed by the subsidiary company's auditors and board of directors.