BrightView Declares Cash Dividend Payment on Preferred Stock

Rhea-AI Summary

BrightView Holdings, Inc. (BV) declared a cash dividend of $8.91 million on its Series A Preferred Stock for the period from December 31, 2023, to March 30, 2024. The dividend will be paid on April 1, 2024. BrightView also entered into an investment agreement with One Rock Capital Partners, LLC, issuing 500,000 shares of Series A Convertible Preferred Stock for $500 million.

Insights

Financial Analyst

BrightView Holdings' declaration of a cash dividend on its Series A Preferred Stock is a significant event for current investors and potential shareholders. The dividend payout, which represents a substantial sum of $8.91 million, indicates a commitment to returning value to shareholders. It is essential to note the preferred stock was part of a larger investment agreement with One Rock Capital Partners, highlighting strategic financing moves by BrightView.

From a financial perspective, the 7.0% annual dividend rate, compounded quarterly, is competitive and could be attractive to income-focused investors. The option for BrightView to pay in kind or cash provides flexibility in managing its capital structure. However, the conversion price of $9.44 per share for the preferred stock into common stock will be a critical factor to monitor, as it will affect the dilution of existing common shareholders' equity and could influence the stock's market price.

Market Research Analyst

The landscaping services industry is often seen as a stable sector due to the essential nature of its services. BrightView Holdings, being a leader in this space, demonstrates its operational strength by issuing dividends. This move may enhance investor confidence and could be indicative of the company's robust financial health and positive future outlook.

However, the market's response to such dividend declarations can vary. Investors typically view cash dividends as a positive signal about a company's profitability and stability. It's important to assess how this dividend declaration aligns with industry norms for payout ratios and yield, as it may influence the attractiveness of BrightView's stock compared to its peers.

BLUE BELL, Pa.--(BUSINESS WIRE)-- BrightView Holdings, Inc. (NYSE: BV), the leading commercial landscaping services company in the United States, announced today that the Company’s Board of Directors has declared a cash dividend of $8.91 million on its Series A Preferred Stock. The dividend represents payment for the period from December 31, 2023 to March 30, 2024, and will be paid on April 1, 2024, to holders of record as of March 15, 2024.

On August 28, 2023, BrightView entered into an investment agreement with an affiliate of One Rock Capital Partners, LLC, pursuant to which the Company issued and sold, in a private placement, an aggregate of 500,000 shares of the Company’s Series A Convertible Preferred Stock, par value $0.01 per share, for an aggregate purchase price of $500 million. The Series A Preferred Stock is convertible into shares of BrightView common stock at a conversion price of $9.44 per share. Holders of the Series A Preferred Stock are entitled to a dividend at the rate of 7.0% per annum, compounding quarterly, paid in kind, or paid in cash, at the Company’s election.

About BrightView
BrightView (NYSE: BV), the nation’s largest commercial landscaper, proudly designs, creates, and maintains the best landscapes on Earth and provides the most efficient and comprehensive snow and ice removal services. With a dependable service commitment, BrightView brings brilliant landscapes to life at premier properties across the United States, including business parks and corporate offices, homeowners' associations, healthcare facilities, educational institutions, retail centers, resorts and theme parks, municipalities, golf courses, and sports venues. BrightView also serves as the Official Field Consultant to Major League Baseball. Through industry-leading best practices and sustainable solutions, BrightView is invested in taking care of our team members, engaging our clients, inspiring our communities, and preserving our planet. Visit www.BrightView.com and connect with us on X (formerly known as Twitter), Facebook, and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240314326516/en/

Investors

IR@brightview.com

News Media

David Freireich, Vice President of Communications & Public Affairs

David.Freireich@brightview.com

Source: BrightView Landscapes

FAQ

What dividend was declared by BrightView Holdings, Inc. (BV) on its Series A Preferred Stock?

BrightView Holdings, Inc. (BV) declared a cash dividend of $8.91 million on its Series A Preferred Stock.

When will the dividend be paid by BrightView Holdings, Inc. (BV) on its Series A Preferred Stock?

The dividend will be paid on April 1, 2024, to holders of record as of March 15, 2024.

With whom did BrightView Holdings, Inc. (BV) enter into an investment agreement?

BrightView Holdings, Inc. (BV) entered into an investment agreement with an affiliate of One Rock Capital Partners, LLC.

How many shares of Series A Convertible Preferred Stock did BrightView Holdings, Inc. (BV) issue in the private placement?

BrightView Holdings, Inc. (BV) issued an aggregate of 500,000 shares of Series A Convertible Preferred Stock.

At what price is the Series A Preferred Stock convertible into shares of BrightView common stock?

The Series A Preferred Stock is convertible into shares of BrightView common stock at a conversion price of $9.44 per share.