Summary
Visa Inc. (V) filed an 8-K on June 1, 2010, reporting a significant event related to its litigation and share repurchase program. The company deposited $500 million into a litigation escrow account, which, under its retrospective responsibility plan, effectively resulted in a share repurchase. This action reduced the outstanding Class B common stock by over 6.7 million shares, repurchased at an average price of approximately $74.22 per share.
Key Highlights
- 1Visa Inc. deposited $500 million into its litigation escrow account on May 28, 2010.
- 2This deposit was made under the company's retrospective responsibility plan.
- 3The deposit effectively acted as a repurchase of 6,737,112 shares of Class A common stock on an as-converted basis.
- 4The effective repurchase price was approximately $74.2158 per share.
- 5The Class B common stock share count decreased from 142,987,780 to 136,250,668.
- 6The conversion rate for Class B common stock was adjusted downwards from 0.5824 to 0.5550.
- 7The pricing for the share repurchase was based on the volume-weighted average price over a six-day period ending May 27, 2010.