Becton, Dickinson adjusts conversion rate for 6% preferred stock

By Mary-Katherine Stinson

Lexington, Ky., May 31 – Becton, Dickinson & Co. announced an adjustment to the conversion rate of its 6% mandatory convertible preferred stock, series B, ownership of which is held in depository shares each representing 1/20th interest in a share of mandatory convertible preferred stock, according to an 8-K filing with the Securities and Exchange Commission.

The new minimum conversion rate will be 3.5641 shares of Becton, Dickinson common stock, and the maximum conversion rate will be 4.2770 shares of common stock per share of mandatory convertible preferred stock, which corresponds to approximately 0.1782 and 0.2139 shares of common stock per depositary share, respectively.

The final conversion rate on the mandatory conversion date will be 3.9697 shares of common stock per share of mandatory convertible preferred stock, which corresponds to 0.1985 shares of common stock per depository share.

The adjustment is necessary to account for the cumulative effects of previously deferred adjustments and make required corresponding adjustments on the mandatory conversion date of June 1. Becton Dickinson has to date deferred adjustments that were required to be made for each of its quarterly cash dividend payments that exceeded the threshold of $0.77 per share of common stock since the spinoff transaction of Embecta Corp.

The mandatory conversion rate was calculated based on the average volume-weighted average price per share of common stock for the 20 consecutive trading day period beginning on, and including, May 1 and ending on, and including, May 26.

Becton, Dickinson is a Franklin Lakes, N.J.-based medical technology company.

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