Loans with no maturity date continue indefinitely (unless repayment is agreed between the borrower and the lenders at some point) and may be known as 'perpetual stocks'.
One is core capital, which includes only retained earnings and funds from the sale of common stock and another type of security called noncumulative perpetual preferred stock.
Pacificorp, Portland, Ore., four million shares of $25 perpetual preferred stock, Baa-1/A-.
Heller Financial Inc., 5 million shares of $25 cumulative perpetual preferred stock, A-3/A-.
In case of issuing securities without specific maturity, such as perpetual preferred stock, financing costs are not capitalised and expensed immediately.
The 6.1 million shares of fixed-rate perpetual stock were priced at $25 a share with an annual dividend rate of 8 1/2 percent.
Tier One capital includes retained earnings, money paid in by common shareholders and noncumulative perpetual preferred stock.
A $100 million issue of Salomon Inc. $25 perpetual preferred stock was priced yesterday to yield 9.5 percent annually.
Cumulative perpetual preferred stocks are excluded from Tier 1.
Berkshire Hathaway acquired 10% perpetual preferred stock of Goldman Sachs.
