Preferred Equity Investments & S-Corps Question

If a private equity firm acquires an S-Corp in a 100% cash transaction, is it possible for the purchase consideration to be in the form of entirely preferred equity and debt?

Not quite sure about the tax implications and costs / other considerations for the target company to convert into a C-Corp. Like would the target's S-Corp classification be automatically terminated and changed to a C-Corp since there was a breach of the rule stating that there can only be one class of common shares?

Any insights or resources to learn more about how this type of transaction can be structured would be greatly appreciated.