RICHMOND, Va., Jan. 9, 2017 /PRNewswire/ -- Universal
Corporation (NYSE: UVV) ("Universal") today announced that all
outstanding shares of its Series B 6.75% Convertible Perpetual
Preferred Stock ("Series B Preferred Stock") will mandatorily
convert on January 13, 2017 (the
"Mandatory Conversion Date").
Universal has elected to settle its conversion obligation in
cash. Holders of the Series B Preferred Stock will receive
the product of the conversion rate, 22.3920, and the average volume
weighted average price of Universal's common stock during the cash
settlement averaging period, for each share of Series B Preferred
Stock converted. The cash settlement averaging period will
begin on January 17, 2017, the
trading date following the Mandatory Conversion Date, and will run
for ten trading days, ending on January
30, 2017. Cash settlement will occur on January 31, 2017, and the Company intends to use
cash on hand for the settlement.
From and after the Mandatory Conversion Date, the Series B
Preferred Stock not previously converted will cease to be
outstanding and all rights of the holders with respect to the
Series B Preferred Stock will terminate, except for the right to
receive cash, as described above. The Series B Preferred
Stock dividends, totaling approximately $15
million per year, will no longer be paid as of the Mandatory
Conversion Date. All accumulated and unpaid dividends on the
Series B Preferred Stock for dividend
payment dates ending prior to the date
of the conversion notice
have been paid in cash.
As of January 6, 2017, 107,418
shares of Series B Preferred Stock were outstanding, all of which
will mandatorily convert on the Mandatory Conversion Date.
During December 2016, holders of
111,072 shares of Series B Preferred Stock voluntarily exercised
their conversion rights. These shares were converted into
2,487,118 shares of Universal's common stock.
Headquartered in Richmond,
Virginia, Universal Corporation is the leading global leaf
tobacco supplier and conducts business in more than 30
countries. Its revenues for the fiscal year ended March 31, 2016, were $2.1
billion. For more information on Universal Corporation,
visit its website at www.universalcorp.com.
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SOURCE Universal Corporation