Summary
Visa Inc. (V) filed an 8-K on April 6, 2011, to report a significant event related to its retrospective responsibility plan. On March 31, 2011, the company deposited $400 million into a litigation escrow account. This action is structured as a repurchase of its Class A common stock on an as-converted basis, effectively reducing the Class B common stock share count. This deposit had a material impact on the company's share structure, reducing the number of Class B shares and lowering the conversion rate applicable to these shares. The repurchase price was determined based on the volume-weighted average price over a specified eight-day period, reflecting a commitment to managing its share structure and potential litigation liabilities.
Key Highlights
- 1Visa Inc. deposited $400 million into a litigation escrow account on March 31, 2011.
- 2The deposit is treated as a repurchase of Class A common stock on an as-converted basis.
- 3This action reduces the Class B common stock share count from 125,253,161 to 119,833,888.
- 4The effective repurchase price was approximately $73.81 per share.
- 5The conversion rate for Class B common stock decreased from 0.5102 to 0.4881.
- 6The share repurchase calculation was based on the volume-weighted average price from March 25, 2011, to April 5, 2011.
- 7The event is part of Visa's retrospective responsibility plan.