US: Beam Inc readies 1979 stock issue closure
Holders of Beam's 1979 stock have until the middle of November to make up their minds
Beam is calling time on on its convertible preferred stock that was issued back in 1979.
The US-based spirits firm said earlier this week that it will redeem the remaining outstanding shares of its US$2.67 convertible preferred stock on 20 November. Those that still own the shares, of which 145,948 of the original 5.5m issued remain, have until the close of trade on 15 November to redeem them.
Thereafter, any outstanding shares will be redeemed at a price of $30.50 per share plus accrued and unpaid dividends of $0.52 per share.
Alternatively, the stock can be converted, at a ratio of one share for 8.411 shares of Beam's common stock. With a closing price of $58.41 on 20 August, this would equate to a market value of $491.29 - including accrued and unpaid preferred dividends - rather than the cash payment of $31.02.
“Since the original issuance … in 1979, holders of more than 97% of the shares have elected to convert their shares into common stock,” the company said. “Given the low number of remaining … shares, the company determined that it is appropriate to eliminate this second class of stock and continue with common stock as its only class of outstanding equity securities.”
Beam issued its H1 results earlier this week.
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