Summary
Visa Inc. has announced a $375 million deposit into its U.S. litigation escrow account as part of its U.S. retrospective responsibility plan. This action triggers a downward adjustment in the conversion rates of its Class B-1 and Class B-2 common stock relative to Class A common stock. Specifically, the conversion rate for Class B-1 decreased from 1.5653 to 1.5609, and for Class B-2 from 1.5430 to 1.5342, effective March 27, 2025. These conversion rate adjustments have a dilutive effect on earnings per share, mirroring the impact of a share repurchase. As a result, the as-converted share count for Class B-1 common stock decreased by approximately 21,297 shares, and for Class B-2 common stock decreased by approximately 1,060,049 shares. The deposit and subsequent adjustments were calculated based on the volume-weighted average price over a three-day period ending March 28, 2025, in accordance with the company's charter.
Key Highlights
- 1Visa Inc. funded its U.S. litigation escrow account with $375 million.
- 2The funding is part of the company's U.S. retrospective responsibility plan.
- 3Class B-1 and Class B-2 common stock conversion rates have been adjusted downwards.
- 4The conversion rate for Class B-1 common stock changed from 1.5653 to 1.5609.
- 5The conversion rate for Class B-2 common stock changed from 1.5430 to 1.5342.
- 6These adjustments effectively reduce the as-converted share count for Class B-1 by ~21,297 and Class B-2 by ~1,060,049.
- 7The effect on earnings per share is similar to a share repurchase program.