Beam to redeem remaining convertible preferreds, expects conversions

By Ashley Montgomery

Kansas City, Kan., Aug. 21 - Beam Inc. will redeem all of its remaining $2.67 convertible preferred stock, according to a notice.

The company will redeem the remaining preferreds on Nov. 20 at $30.50 per share plus $0.52 of accrued dividends per share. The total redemption price will be $4,527,306.96.

Holders may choose to convert their outstanding shares of preferred stock into common stock until 6 p.m. ET on Nov. 15. The conversion ratio is one share of preferred stock for 8.411 shares of common stock. Beam's common stock closed at $58.41 on Monday.

Beam noted that at that price, the preferreds convert into shares with a marked value of $491.29 as opposed to the $31.02 cash payment in the redemption.

The company said less than 3% of the original shares remain outstanding. For this reason, the company said it decided to redeem the remaining 145,948 preferreds, leaving its common stock as its only outstanding equity securities.

Wells Fargo Bank, NA is the paying agent.

Beam, formerly Fortune Brands, Inc., produces and sells spirits. The company is based in Deerfield, Ill.

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