Summary
Visa Inc. (V) filed an 8-K on September 24, 2014, to report a change in the conversion rate of its Class B common stock. This change was triggered by a deposit of $450 million into a litigation escrow account, as per the company's retrospective responsibility plan. This deposit effectively adjusted the conversion rate downwards, thereby reducing the number of as-converted Class B shares.
Key Highlights
- 1Visa deposited $450 million into a litigation escrow account on September 23, 2014.
- 2The deposit was made under the company's retrospective responsibility plan.
- 3The conversion rate for Visa's Class B common stock was adjusted from 0.4206 to 0.4121.
- 4This adjustment is effective immediately as of the filing date.
- 5The total number of as-converted Class B common shares decreased by 2,089,780.
- 6The number of as-converted Class B shares is now 101,167,803.
- 7The calculation of the new conversion rate was based on the volume-weighted average price over a nine-day period (September 11-23, 2014).