Here's my take:
SRG capital structure may need to change.
$1.6B-$2B <--Berkshire Hathaway
$70mm <--Preferred owned by a bunch of scattered retail/diversified funds
Common Equity (ESL and others)
Restructurings are zero sum and it seems that there's no one to look out for that little old preferred's interest. That said, because it's so small, there's not a huge reward to be had in screwing them either.
I don't see why they necessarily take out the preferred at call date. I would say it's paying a BELOW market coupon for an illiquid, highly subordinated orphan in the capital structure. I'd underwrite it as a perpetual and hope they raise common to de-risk you, rather than, for example, issue to the common shareholders a right to buy a convert that pays down the Berkshire loan partially in exchange for a lower coupon and refinance/extension (which would kick preferred and non-participating commons to the back of the line)
That's what I'd do if I was Eddie and crew and SRG needed cash.