2023-05-18 13:45:02 ET
- Monro ( NASDAQ: MNRO ) has entered into an agreement with the holders of its Class C Convertible Preferred Stock under which the Class C Preferred Stock will be eliminated .
- Under the terms, the conversion rate of the Class C Preferred Stock to Monro common stock will be adjusted so that each share of Class C Preferred Stock will convert into 61.275 shares of common stock, an increase from the current conversion rate of 23.389 shares.
- The adjusted conversion rate represents a premium of ~$36.6M, based on Monro’s closing stock price on May 12, 2023, the date of the agreement.
- Assuming all Class C Preferred Stock were converted, the value of the additional number of shares of common stock that the Class C Holders would receive represents ~2.3% of the Company’s total equity value.
- MNRO is -8.71% to $44.67.
For further details see:
Monro shares slides on agreement to eliminate Class C preferred stock