Typically a trust preferred security. A company establishes a trust, which sells trust preferred securities in a public offering. The proceeds from the sale of the trust preferred securities are used to purchase junior subordinated debentures of the parent company. The company makes interest payments to the trust, which are passed on as distributions to the trust preferred security holders. At maturity the trust returns the face amount of the trust preferred securities to the holders, using the principal of the debt securities received by the trust upon the simultaneous maturity of the debt securities. Trust preferred securities – and the underlying debt securities – typically have a long maturity (at least 30 years) subject to an earlier optional redemption by the company.