All articles tagged with #preferred stock
Berkshire Hathaway is considering acquiring Occidental Petroleum’s chemicals business for around $10 billion, potentially using a tax-efficient deal involving preferred stock and cash, which would benefit Occidental by avoiding taxes and reducing dividend payments, while offering Berkshire a strategic purchase option.
Occidental Petroleum has redeemed $647 million, or about 6.5%, of Berkshire Hathaway's preferred stock as the oil company begins paying back Warren Buffett four years after he helped finance its acquisition of Anadarko Petroleum. The total cost of Occidental's redemption was $712 million as it includes a 10% premium to Buffett and matches distributions to common stock holders. Separately, Berkshire owns a 24% stake in Occidental common stock and is the company's largest shareholder.
PacWest Bancorp has announced a quarterly cash dividend of $0.01 per common share and $0.4845 per depositary share on its 7.75% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A. The dividends will be payable on May 31, 2023, and June 1, 2023, respectively. The decision to reduce the dividend was made to accelerate plans to build capital to CET1 of 10%+ due to current economic uncertainty, recent volatility in the banking sector, and potential changes in regulatory capital requirements. PacWest Bancorp is a relationship-based community bank focused on providing business banking and treasury management services to small, middle-market, and venture-backed businesses.
First Republic Bank has suspended payments on each of its seven series of preferred stock, making common stock a better option for investors. The implied yield of the preferred stock varies materially from one series to the next, and the decision to suspend payments was a measure of prudent oversight. While the advantages of preferred stock still apply, the downside potential for both common and preferred is probably identical or close to it. The common shares are a vastly superior option for investors who are comfortable with the risk.
First Republic Bank has suspended payments of quarterly cash dividends on its preferred stock as a measure of prudent oversight, following the suspension of its dividend on common stock last month after the collapse of Silicon Valley Bank. Large US banks injected $30bn in deposits into First Republic Bank last month to rescue the lender caught up in a widening crisis triggered by the collapse of two other mid-sized US lenders.
First Republic has announced the suspension of dividends on its preferred stock, citing the need to preserve capital and maintain liquidity in light of the ongoing economic uncertainty caused by the COVID-19 pandemic.
FTX debtors have agreed to sell their preferred stock in Mysten Labs, the company behind the Sui blockchain, for roughly $95 million, which is 95% of the amount FTX Ventures invested in a $300 million funding round in September 2022. The deal is subject to court approval and the possibility of other bids on the stock before being finalized. The debtors also plan to recover $460 million of user funds from venture capital firm Modulo Capital.