Viad Corp (NYSE: VVI) has announced its achievement of the mandatory conversion right for all outstanding shares of its 5.5% convertible Series A preferred stock, resulting in a notice of mandatory conversion delivered to Crestview Partners, the holder of the preferred stock. This achievement was realized on December 6, 2024, when Viad's common stock exceeded a volume-weighted-average price of $42.50 for 20 out of 30 consecutive trading days.
The effective date for the mandatory conversion has been set as December 31, 2024. At that time, all 135,000 shares of preferred stock will be converted into approximately 6.7 million shares of Viad common stock, with no additional dividends accruing or being payable on the preferred stock. It's worth noting that currently, there are approximately 21.3 million shares of Viad common stock outstanding.
Steve Moster, President and CEO of Viad, expressed his satisfaction with this milestone, citing the company's strong stock-price performance. Moster highlighted the significance of converting the preferred stock, as it simplifies the company's capital structure and avoids annual cash dividend payments of $8 million. He also expressed gratitude to Crestview for their support and confidence in Viad's business and strategic direction.
Additionally, Pursuit is set to launch as a standalone publicly traded company upon the sale of Viad's GES business, which is expected to close on December 31, 2024. Pursuit, as an independent, high-growth, and high-margin business, will have the financial flexibility and balance sheet capacity to accelerate its growth strategy.
Upon completion of the transaction, Viad intends to change its corporate name to Pursuit and change its NYSE common stock ticker symbol to PRSU.
Viad (NYSE: VVI) is a leading global provider of extraordinary experiences, including attractions, hospitality, exhibition services, and experiential marketing through its two businesses: Pursuit and GES. Pursuit, an attractions and hospitality company, owns and operates a collection of inspiring experiences in iconic destinations in the United States, Canada, and Iceland, while GES is a global exhibition services and experiential marketing company offering a comprehensive range of services to the world's leading event organizers and brands. Following these announcements, the company's shares moved -0.3%, and are now trading at a price of $43.51. Check out the company's full 8-K submission here.
