Arconic Announces Mandatory Conversion of Its 5.375% Class B Mandatory Convertible Preferred Stock
September 28 2017 - 4:15PM
Business Wire
Arconic Inc. (“Arconic” or the “Company”) (NYSE: ARNC) announced
today that all its outstanding 5.375% Class B Mandatory Convertible
Preferred Stock, Series 1, par value $1.00 per share (“Class B
preferred stock”), will automatically convert into shares of
Arconic common stock at a rate of 15.6996 common shares per share
of Class B preferred stock, with deemed effect on October 1, 2017,
the mandatory conversion date.
On October 2, 2017, the first business day following the
mandatory conversion date, holders of the depositary shares (NYSE:
ARNC.PB), each representing one-tenth (1/10th) interest in one
share of the Class B preferred stock, will receive 1.56996 Arconic
common shares for each depositary share. Cash will be paid in lieu
of fractional common shares. No action by holders of the depositary
shares is required in connection with the conversion. As of
September 27, 2017, there were 24,977,625 depositary shares
outstanding; 22,375 depositary shares were previously tendered for
early conversion into 29,269 shares of Arconic common stock.
The conversion of the remaining outstanding Class B preferred
stock will result in the issuance of approximately 39.2 million
shares of Arconic common stock on October 2, 2017 (assuming no
further early conversions). As of July 28, 2017, Arconic had
441,030,999 shares of common stock issued and outstanding.
Arconic previously announced that Arconic’s Board of Directors
declared a dividend on July 24, 2017 of $6.71875 per share of the
Class B preferred stock (or $0.671875 per depositary share),
payable on October 1, 2017 to holders of record as of September 15,
2017. This dividend payment will be made in the customary
manner.
Upon conversion, the Class B preferred stock and depositary
shares will no longer be outstanding and all rights with respect to
the Class B preferred stock and depositary shares will cease and
terminate, except the right to receive the number of whole common
shares issuable upon conversion of the Class B preferred stock and
any required cash-in-lieu of fractional shares. Upon conversion,
the depositary shares will be delisted from trading on the New York
Stock Exchange.
About Arconic
Arconic (NYSE: ARNC) creates breakthrough products that shape
industries. Working in close partnership with our customers, we
solve complex engineering challenges to transform the way we fly,
drive, build and power. Through the ingenuity of our people and
cutting-edge advanced manufacturing techniques, we deliver these
products at a quality and efficiency that ensure customer success
and shareholder value. For more information: www.arconic.com.
Follow @arconic: Twitter, Instagram, Facebook, LinkedIn and
YouTube.
Dissemination of Company Information
Arconic intends to make future announcements regarding Company
developments and financial performance through its website at
www.arconic.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170928006298/en/
Arconic Inc.Investor Contact:Patricia Figueroa,
212-836-2758Patricia.Figueroa@arconic.comorMedia Contact:Shona
Sabnis, 212-836-2626Shona.Sabnis@arconic.com
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