Summary
Visa Inc. filed an 8-K on July 6, 2022, to disclose an adjustment to the conversion rate of its Class B common stock. This adjustment stems from a $600 million deposit made on June 29, 2022, into a U.S. litigation escrow account, as part of its U.S. retrospective responsibility plan. The deposit triggered a decrease in the conversion rate for Class B common stock from 1.6181 to 1.6059, effective June 29, 2022.
Key Highlights
- 1Visa Inc. made a $600 million deposit into a U.S. litigation escrow account on June 29, 2022.
- 2This deposit led to a revised conversion rate for Class B common stock, decreasing from 1.6181 to 1.6059.
- 3The conversion rate adjustment is effective as of June 29, 2022.
- 4The adjustment resulted in a reduction of 2,996,326 Class B common stock shares on an as-converted basis, from 397,271,122 to 394,274,796.
- 5The company states this conversion rate adjustment has the same effect on earnings per share as repurchasing Class A common stock.
- 6Calculations for the deposit and conversion rate were performed according to the company's certificate of incorporation, using the volume-weighted average price for the period of June 24, 2022, to July 5, 2022.