Spire Inc. Plans Redemption of Series A Preferred Stock
Spire Inc. (NYSE: SR) recently announced a significant move for its investors, concerning the 5.90% Series A Cumulative Redeemable Perpetual Preferred Stock (NYSE: SR.PRA). The company has officially notified the holders of this stock about its intention to redeem all 10,000 shares currently outstanding. These shares carry a par value of $25.00 each, and the corresponding depositary shares represent a fractional interest in these shares.
Details of the Redemption Process
The planned redemption date is set for a future day, with an estimated price of $25.00 per depositary share. This total includes an additional amount, ensuring holders receive $25.36056 per share, which accounts for all accrued and unpaid dividends until the redemption date. This means that the Series A Preferred Stock will stop accumulating dividends just prior to this date, marking a crucial financial maneuver for Spire Inc.
Changes for Investors After Redemption
Once the redemption occurs, the Series A Preferred Stock will no longer exist, and any corresponding rights held by investors will cease. This excludes the right to receive the cash associated with the redemption, which will be processed without accruing interest. Consequently, there will be no dividend payments following the redemption date.
About the Redemption and DTC Procedures
Spire Inc. has collaborated with The Depository Trust Company (DTC) to facilitate this redemption process. Payments to DTC will be managed by Computershare Inc. and Computershare Trust Company, N.A. They function as both the transfer agent and the redemption agent. Should investors have inquiries or require additional documentation related to the redemption notice and other pertinent materials, they are encouraged to contact Computershare Trust Company, N.A.
Investor Guidance
Investors are advised to consult the financial institution or broker managing their investments in the depositary shares. These institutions can provide critical information on how to obtain the redemption price for their shares.
Who is Spire Inc.?
Spire Inc. (NYSE: SR) is a leading energy company dedicated to enhancing lives through natural gas. With a commitment to serving approximately 1.7 million homes and businesses, Spire is among the largest publicly traded natural gas companies in the U.S. The company operates gas utilities across several states, making a substantial impact on everyday life by providing essential energy services. Spire’s efforts extend beyond gas utilities; they also include operations in energy marketing and midstream services. The firm is focused on growth through infrastructure development and continuous enhancements in service delivery.
Frequently Asked Questions
What is Spire Inc.'s latest announcement regarding its preferred stock?
Spire Inc. announced its intent to redeem all 10,000 shares of its 5.90% Series A Cumulative Redeemable Preferred Stock.
When is the anticipated redemption date for the Series A Preferred Stock?
The anticipated redemption date is set for a future date, after which the stock will no longer accumulate dividends.
What does the redemption price entail for investors?
The redemption price will be $25.36056 per share, which includes accrued dividends up to the redemption date.
How will the redemption process be executed?
The Company will work with The Depository Trust Company to manage the redemption process and payments.
What should investors do if they have questions about the redemption?
Investors should contact Computershare Trust Company, N.A. for questions or additional information regarding the redemption process.
