Summary
Coherent Corp. (COHR) announced a mandatory conversion of all its outstanding 6.00% Series A Mandatory Convertible Preferred Stock into common stock. This conversion is set to occur on July 3, 2023, at a fixed rate of 4.4523 shares of common stock per preferred share. This event will result in the issuance of approximately 10.2 million new shares of common stock, effectively retiring the preferred stock class and eliminating its associated dividend obligations. Following the conversion, Coherent Corp. plans to delist the Series A Preferred Stock from the New York Stock Exchange and suspend its reporting obligations related to this preferred stock with the SEC. Holders of the preferred stock will receive a final quarterly dividend of $3.00 per share on the conversion date. No further action is required from preferred stockholders, as the conversion is automatic.
Key Highlights
- 1Mandatory conversion of all outstanding 6.00% Series A Mandatory Convertible Preferred Stock into common stock on July 3, 2023.
- 2Conversion rate set at 4.4523 shares of Common Stock for each share of Preferred Stock.
- 3Approximately 10.2 million shares of Common Stock will be issued upon conversion.
- 4Preferred Stock will be delisted from the NYSE and deregistered under Section 12(b) of the Exchange Act.
- 5Company intends to suspend reporting obligations for the Preferred Stock under Sections 13 and 15(d) of the Exchange Act.
- 6Final quarterly cash dividend of $3.00 per share on Preferred Stock to be paid on the Conversion Date to shareholders of record as of June 15, 2023.
- 7All rights associated with the Preferred Stock, including dividend rights, will terminate after the Conversion Date, except for the conversion shares and cash in lieu of fractional shares.