Preferred Stock

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

Preferred Stock

Preferred Stock

Prior to June 30, 2020, the Company classified its Series A Preferred Stock as mezzanine equity because the instrument contained a redemption feature which was contingent upon certain events, the occurrence of which was not solely within the control of the Company.

We have bifurcated embedded derivatives and assess fair value each reporting date. We recorded a loss $102.6 million and $32.8 million within ‘‘Other income (expense)— net,’’ for the three and six months ended June 30, 2020, respectively, reflecting the adjustments to the fair value of the make-whole derivative liability. As of June 30, 2020, we determined the fair value of the make-whole provision to be $205.2 million, reflected as ‘‘Make-whole derivative liability’’ within the condensed consolidated balance sheet as of June 30, 2020.

Upon the closing of the IPO on July 6, 2020 (see further discussion in Note 18), we have redeemed all of the outstanding Series A Preferred Stock as required by the Certificate of Designation. In addition, we made the total make-whole payment of $205.2 million. We also recorded accretion of $35.1 million and $36.1 million using the interest method for the three and six months ended June 30, 2020, respectively. As of June 30, 2020, Series A Preferred Stock was fully accreted to the redeemable balance of $1,067.9 million and was classified as current liability.

On May 14, 2020, March 4, 2020 and May 31, 2019, the board of directors of Dun & Bradstreet Holdings, Inc. declared a cash dividend of $30.51 per share to all holders of shares of Series A Preferred Stock, respectively. An aggregate amount of $32.1 million, $32.0 million, $10.7 million and $21.3 million was paid on June 26, 2020, May 27, 2020, June 28, 2019 and on June 19, 2019, respectively.