Summary
This 8-K filing from Visa Inc. announces a change in the conversion rate for its Class B common stock, effective December 29, 2011. This adjustment stems from a $1.565 billion deposit made into a litigation escrow account as part of the company's retrospective responsibility plan. The conversion rate for Class B common stock decreased from 0.4881 to 0.4254, leading to a reduction in the total number of as-converted Class B shares by approximately 15.4 million. The revised conversion rate was determined based on the volume-weighted average price of Visa's stock over a 30-day period preceding the deposit. This event directly impacts the number of shares underpinning potential future conversions or distributions related to the Class B stock, which is a material consideration for investors holding or monitoring this class of security or understanding the company's overall share structure and contingent liabilities.
Key Highlights
- 1Visa Inc. announced a new conversion rate for its Class B common stock.
- 2The change is a result of a $1.565 billion deposit into a litigation escrow account on December 29, 2011.
- 3The conversion rate for Class B common stock decreased from 0.4881 to 0.4254.
- 4This decrease effectively reduced the number of as-converted Class B shares by 15,381,045.
- 5The new number of as-converted Class B shares is 104,452,843.
- 6The calculation of the conversion rate was based on the volume-weighted average price over a 30-day period (December 22, 2011 - February 6, 2012).