SuRo Capital Corp. Announces Adjustment to Conversion Rate for Convertible Notes

Rhea-AI Summary

SuRo Capital Corp (Nasdaq: SSSS) announced a conversion rate adjustment for its 4.75% Convertible Senior Notes due 2023, influenced by a planned cash dividend of $0.15 per share. Effective August 11, 2020, the conversion price is set at $10.10 per share, down from $10.21. Stockholders of record by August 11 will receive the dividend on August 25, 2020. The tax implications of the dividend will be revealed after year-end and reported on Form 1099-DIV. The company advises caution regarding its forward-looking statements due to potential market volatility.

Positive

• None.

Negative

• Decrease in conversion price from $10.21 to $10.10, which may reflect underlying stock performance concerns.

SAN FRANCISCO, Aug. 11, 2020 (GLOBE NEWSWIRE) -- SuRo Capital Corp. (“SuRo Capital” or the “Company”) (Nasdaq:SSSS) today announced an adjustment to the conversion rate of its 4.75% Convertible Senior Notes due 2023 (the “Notes”) as a result of the Company’s cash dividend payable on August 25, 2020.

Effective as of August 11, 2020, the conversion price applicable to the Notes has been adjusted to $10.10 per share (99.0298 shares of the Company’s common stock per $1,000 principal amount of Notes) from the most recent conversion price of $10.21 per share (97.9448 shares of the Company’s common stock per $1,000 principal amount of Notes), which has been in effect since December 31, 2019.  The adjustment to the conversion rate of the Notes was made pursuant to the supplemental indenture governing the Notes as a result of the Company’s cash dividend of $0.15 per share, payable on August 25, 2020 to the Company’s common stockholders of record as of the close of business on August 11, 2020.  The ex-dividend date is August 10, 2020.

Notice of the conversion rate adjustment will be delivered to holders of the Notes and U.S. Bank National Association, as trustee, in accordance with the terms of the supplemental indenture governing the Notes.

Certain Information Regarding the Dividend

The date of declaration and amount of the dividend are subject to the sole discretion of SuRo Capital’s Board of Directors.  The aggregate amount of the dividend declared and paid by SuRo Capital will be fully taxable to stockholders.  The tax character of SuRo Capital’s dividends cannot be finally determined until the close of SuRo Capital’s taxable year (December 31).  SuRo Capital will report the actual tax characteristics of each year’s dividends annually to stockholders and the IRS on Form 1099-DIV subsequent to year-end.

Registered stockholders with questions regarding declared dividends may call American Stock Transfer at 800-937-5449.

Forward-Looking Statements

Statements included herein, including statements regarding SuRo Capital's beliefs, expectations, intentions or strategies for the future, may constitute "forward-looking statements".  SuRo Capital cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements.  All forward-looking statements involve a number of risks and uncertainties, including the impact of the COVID-19 pandemic and any market volatility that may be detrimental to our business, our portfolio companies, our industry, and the global economy, that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Risk factors, cautionary statements and other conditions which could cause SuRo Capital's actual results to differ from management's current expectations are contained in SuRo Capital's filings with the Securities and Exchange Commission. SuRo Capital undertakes no obligation to update any forward-looking statement to reflect events or circumstances that may arise after the date of this press release.

About SuRo Capital Corp.

SuRo Capital Corp. (Nasdaq:SSSS) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. The fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. SuRo Capital is headquartered in San Francisco, CA. Connect with the company on Twitter, LinkedIn, and at www.surocap.com

Contact
SuRo Capital Corp.
(650) 235-4769
IR@surocap.com

Media Contact
Bill Douglass
Gotham Communications, LLC
Communications@surocap.com

 

FAQ

What is the adjusted conversion price for SuRo Capital's Convertible Senior Notes?

The adjusted conversion price is $10.10 per share.

When is SuRo Capital's dividend payable?

The dividend is payable on August 25, 2020.

What is the amount of the dividend announced by SuRo Capital?

The announced dividend amount is $0.15 per share.

What is the ex-dividend date for SuRo Capital's upcoming dividend?

The ex-dividend date is August 10, 2020.

What should shareholders expect regarding tax implications of SuRo Capital's dividends?

The tax implications will be reported annually on Form 1099-DIV after year-end.