Virginia Beach, VA-based Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) has announced an adjustment to the conversion price of its 7.00% Subordinated Convertible Notes due 2031. The adjustment follows the redemptions of the company's Series D Cumulative Convertible Preferred Stock on Monday.
Previously, the conversion price for the notes was approximately $4.22 per share of common stock. However, due to the January redemptions, where the Series D Preferred Stock was converted at the lowest price of approximately $3.75 per share into common stock, the conversion price has been adjusted to about $2.06 per share.
This represents a 45% discount to the $3.75 conversion and means that for each $25.00 of principal amount of the notes being converted, approximately 12.13 shares of common stock will be issued.
On the latest redemption date, Wheeler processed 20 redemption requests, redeeming 102,487 shares of Series D Preferred Stock at a price of approximately $39.82 per share, which included accrued dividends. The company issued 1,089,382 shares of common stock to settle these redemptions. As of today, Wheeler has 2,401,831 shares of Common Stock and 2,204,902 shares of Series D Preferred Stock outstanding.
To date, the company has processed 288 redemption requests and has issued approximately 2,340,000 shares of common stock in settlement of these requests. The next deadline for Series D Preferred Stock redemptions is set for January 25, 2025, with the following redemption date scheduled for February 5, 2025.
The news above is based on an SEC filing.
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