PIK as very confusing and there is only one reason to buy the pref B...to convert it, certainly not to hold it. It does not yield 21%, it pays 12% in SHARES and if the shares are lower than when you bought your yield is lower than 12%.
After the conversion it will trade relative to the other fixed instruments of CXW which yield in the 30% range. A 12% PIK pref. will ALWAYS yields 12% to a new buyer. The relative value of the shares your getting as your dividend are worth what the pref B is trading at..period..it's a payment in kind instrument. Exp.... you own 1,000 shares of the pref B...you will get 120 shares a year. If you pay $14 for the stock, your 120 dividend shares are worth $1,680. Your yield is $1,680/$14,000 or 12%....try that with any number. Of course if the pref B drops your effective yield will too.
As I have been hammering, this pref B is $14 because it trades relative to the common, period. After that conversion it will trade versus the $5 pref A. What would you guess would happen? It's a bum deal...sell or convert all you have, IMO.