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

Rhea-AI Summary

SuRo Capital Corp. (SSSS) announced an adjustment to its 4.75% Convertible Senior Notes due 2023, effective February 5, 2021. The conversion price has been reduced from $9.42 to $9.25 per share due to a cash dividend of $0.25 per share, payable on February 19, 2021. This adjustment allows for 108.0505 shares of common stock per $1,000 principal amount of Notes. The ex-dividend date is February 4, 2021, and the tax treatment of the dividend will be reported in 1099-DIV forms to stockholders.

Positive

• Conversion price adjustment of convertible notes improves potential share ownership for investors.
• Cash dividend demonstrates financial commitment to shareholders.

Negative

• None.

SAN FRANCISCO, Feb. 03, 2021 (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 February 19, 2021.

Effective as of February 5, 2021, the conversion price applicable to the Notes has been adjusted to $9.25 per share (108.0505 shares of the Company’s common stock per $1,000 principal amount of Notes) from the most recent conversion price of $9.42 per share (106.1681 shares of the Company’s common stock per $1,000 principal amount of Notes), which has been in effect since December 30, 2020. 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 $0.25 per share, payable on February 19, 2021 to the Company’s common stockholders of record as of the close of business on February 5, 2021. The ex-dividend date is February 4, 2021.

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 any dividends, including any future dividends, are subject to the sole discretion of SuRo Capital’s Board of Directors. The aggregate amount of the dividends 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 new conversion price for SuRo Capital's Convertible Senior Notes (SSSS)?

The new conversion price is $9.25 per share, effective February 5, 2021.

When will SuRo Capital's cash dividend be paid to shareholders?

The cash dividend will be paid on February 19, 2021.

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

The ex-dividend date is February 4, 2021.

How many shares can be converted per $1,000 of SuRo Capital's Convertible Senior Notes?

Investors can convert their notes into 108.0505 shares of common stock per $1,000 principal amount.

What are the tax implications of SuRo Capital's dividend?

The dividends are fully taxable, and the tax characteristics will be reported on Form 1099-DIV.