I wasn't sure which Preferred RAUGAR was referring to. The existing or the one to come. I agree with your concerns on the current Preferred. It is not presently paying nearly enough yield to entice me. While the possibility of BR may be low, anyone who says it's nil is kidding themselves. I wonder what the bonds are doing.
One other thing, I believe that PZN common has a ceiling more in line with 6.5-7.5. It seems to me that an investor would either see this ceiling (because of the convertibility option) or none at all. I don't know someone can arrive at $10.