Summary
Visa Inc. (V) filed an 8-K on July 5, 2018, to announce a change in the conversion rate for its Class B common stock. This adjustment stems from a $600 million deposit made into a U.S. litigation escrow account on June 28, 2018, as part of its U.S. retrospective responsibility plan. The deposit triggered a recalculation of the conversion rate, which decreased from 1.6483 to 1.6298, effective as of June 28, 2018. This adjustment has led to a reduction in the total number of Class B common stock shares on an as-converted basis, decreasing by 4,534,312 shares from 404,671,213 to 400,136,901. The calculations for both the deposit and the conversion rate were performed in accordance with the company's certificate of incorporation, utilizing the volume-weighted average price over a seven-day period from June 25, 2018, to July 3, 2018. Investors should note this change impacts the potential share count associated with Class B stock.
Key Highlights
- 1Visa Inc. announced a new conversion rate for its Class B common stock effective June 28, 2018.
- 2A deposit of $600 million was made into a U.S. litigation escrow account on June 28, 2018.
- 3The conversion rate for Class B common stock decreased from 1.6483 to 1.6298.
- 4The total as-converted Class B common stock share count was reduced by 4,534,312 shares.
- 5The new as-converted share count for Class B common stock is 400,136,901.
- 6Calculations were performed in accordance with the company's certificate of incorporation.
- 7The volume-weighted average price over a 7-day period (June 25, 2018 - July 3, 2018) was used for the calculation.