8-KOther EventsExhibits & Filings

ALLSTATE CORP 8-K Report, Corporate Update (Dec 9, 2019)

Filed December 9, 2019For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

The Allstate Corporation (ALL) announced on December 9, 2019, its decision to redeem all of its outstanding Series A Fixed Rate Noncumulative Perpetual Preferred Stock and the corresponding Series A Depositary Shares. This redemption, scheduled for January 15, 2020, involves a total payment of $287.5 million, with each depositary share being redeemed at $25.00. This action signals a proactive capital management strategy by Allstate, likely aimed at optimizing its capital structure or reducing future interest expenses associated with this preferred stock. Investors holding the Series A Depositary Shares (ALL PR A) should note that dividends will cease to accrue after the redemption date, but a final dividend will be paid to shareholders of record as of December 31, 2019.

Key Highlights

  • 1Allstate is redeeming all outstanding Series A Fixed Rate Noncumulative Perpetual Preferred Stock and corresponding Depositary Shares.
  • 2The redemption date is set for January 15, 2020.
  • 3The total redemption payment amounts to $287.5 million.
  • 4Each Series A Depositary Share will be redeemed at $25.00.
  • 5Dividends on the Series A Preferred Stock will cease to accrue after the redemption date.
  • 6A final cash dividend of $0.3515625 per Series A Depositary Share will be paid to shareholders of record on December 31, 2019.
  • 7The Series A Depositary Shares are traded on the NYSE under the symbol ALL PR A.

Frequently Asked Questions

Allstate is redeeming all of its Series A Fixed Rate Noncumulative Perpetual Preferred Stock and the corresponding Series A Depositary Shares. While the specific reasons are not detailed in this 8-K, such actions are typically undertaken to optimize the company's capital structure, reduce interest expenses, or refinance at more favorable terms.

The redemption is scheduled for January 15, 2020. The total payment for the redemption will be $287.5 million, with each Series A Depositary Share being redeemed at $25.00.

Yes, a final cash dividend of $0.3515625 per Series A Depositary Share will be paid to shareholders who are the record holders as of the close of business on December 31, 2019.

After January 15, 2020, the Series A Depositary Shares will no longer be outstanding, and all dividends will cease to accrue on the redeemed Series A Preferred Stock.