Note 18 - Redemption of the Series A Convertible Preferred Stock

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Preferred Stock [Text Block]

N

ote

18

– Redemption of the

Series

A Convertible

Preferred Stock

In

October

2007,

NHC issued

$170,555,000

of NHC Series A Convertible Preferred Stock (the "Preferred Stock") with a liquidation preference of

$15.75.

Each share of the Preferred Stock was entitled to annual preferred dividends of

$0.80

per share.

In

November

2015,

the Series A Convertible Preferred Stock was redeemed for cash at a redemption price of

$15.75

per share

.

There were

8,288,098

shares of Preferred Stock redeemed under the mandatory redemption for approximately

$130,538,000.

The funding of the Preferred Stock redemption was provided by the Company's cash on hand and borrowings under the credit facility of approximately

$110,000,000.

In lieu of redemption, the holders of the Preferred Stock could have converted any or all of their shares into shares of the Company's common stock. The holders electing to convert their Preferred Shares received

0.24204

shares of common stock for each Preferred Share, together with the cash payable with respect to fractional shares. There were

2,548

,

561

shares of preferred stock that were converted into

616

,

757

shares of the Company's common stock during the

2015

year.