In its latest S-1A SEC form, the company disclosed that it plans to use a big chunk of the money — about $311 million — to buy back all the shares of its nonconvertible preferred stock, at $1,000 a share, which is the price these investors paid.
Plus, it will pay those stockholders any unpaid dividends per share. The investors are, according to these documents, Saturn FD Holdings, LP, and Coatue Tactical Solutions PS. The company was on the hook for annual 10% dividends for five years and 15% for the sixth for these shares. For context, the average dividend yield for public companies in tech is 3.2%, says Dividend.com. Those are not, by the way, the largest VCs invested in ServiceTitan. ICONIQ Growth, Bessemer Venture Partners, and Battery Ventures are, in that order. An entity of TPG is also a major investor, the documents say.