Summary
General Electric Company (GE) announced its decision to redeem all outstanding shares of its Series A, B, C, and D Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock. The redemption is scheduled for September 15, 2023, with a redemption price of $1,000 per share. This action signals GE's move to de-lever its balance sheet and potentially simplify its capital structure as it progresses through its planned spin-offs. Investors should note that the redemption price will be paid in cash and will not include any declared but unpaid dividends. These dividends will be paid separately on the redemption date to shareholders of record as of August 31, 2023. The redemption of these preferred shares is a significant capital management decision that could impact the company's future dividend payments and financial obligations.
Key Highlights
- 1GE is redeeming all outstanding shares of its Series A, B, C, and D Perpetual Preferred Stock.
- 2The redemption date is set for September 15, 2023.
- 3The redemption price is $1,000 per share, payable in cash.
- 4Declared but unpaid dividends will be paid separately on the redemption date.
- 5Holders of record as of August 31, 2023, will receive the regular dividend payment.
- 6This action indicates a move by GE to manage its capital structure and reduce outstanding debt-like instruments.
- 7Dividends on the redeemed preferred stock will cease to accrue after the redemption date.