Summary
Visa Inc. has filed an 8-K report detailing a significant deposit into its U.S. retrospective responsibility plan's litigation escrow account. On December 29, 2022, the company deposited $350 million into this account. This action triggers a downward adjustment to the conversion rate of Visa's Class B common stock, which is exclusively held by U.S. financial institutions and their affiliates. The conversion rate has decreased from 1.6059 to 1.5991, effective the same day.
Key Highlights
- 1Visa deposited $350 million into its U.S. litigation escrow account on December 29, 2022.
- 2This deposit is part of the U.S. retrospective responsibility plan.
- 3The deposit caused a downward adjustment in the conversion rate of Class B common stock.
- 4The conversion rate for Class B stock decreased from 1.6059 to 1.5991.
- 5This adjustment is effective as of December 29, 2022.
- 6The effect on earnings per share (EPS) is similar to a share repurchase of Class A common stock.
- 7The as-converted count of Class B shares decreased by approximately 1,673,532.