CRIIMI MAE Declares Dividend on Common Shares To Be Paid in New Series of Preferred Stock
ROCKVILLE, Md., Sept. 15 /PRNewswire/ -- The board of directors of CRIIMI MAE Inc. (NYSE: CMM - news) yesterday, September 14, 1999, declared a dividend for common shareholders of record as of October 20, 1999. The dividend will be payable on November 5, 1999 in up to an aggregate of 1.61 million shares of a new series of $10 Face Value Series F Redeemable Cumulative Dividend Preferred Stock (the ''Series F Dividend Preferred Stock'') (NYSE: CMM-PrF). The distribution is designed to satisfy the Company's remaining federal income tax obligation for the 1998 tax year.
Holders of record of each share of CRIIMI MAE common stock will be entitled to receive 3/100ths of a share of the new Series F Dividend Preferred Stock (i.e., three shares of Series F Dividend Preferred Stock for every 100 shares of common stock held). Series F Dividend Preferred Stock will be issued in whole shares, with shareholders receiving cash from a transfer agent for their fractional share interests at a price equal to the average sales price of all aggregated fractional shares sold by the transfer agent, less transaction costs. The Series F Dividend Preferred Stock will be convertible into shares of common stock during two, 10-business day windows: the first commencing on November 15, 1999, and the second commencing on January 21, 2000. Conversions will be based on the volume-weighted average of the sale prices of the common stock for the 10-trading days prior to the date converted, subject to a floor of 50% of the volume-weighted average of the sale prices of the common stock on November 5, 1999. At the end of the second conversion period, February 4, 2000, all conversion rights of Series F Dividend Preferred stockholders will expire.
The Series F Dividend Preferred Stock provides for cash dividends at an annual fixed rate of 12%. The first dividend will be paid no earlier than the end of the calendar quarter in which the Company's anticipated plan of reorganization becomes effective, and no more than quarterly thereafter. Series F Dividend Preferred Stock is redeemable at the Company's option after November 5, 2000 at a price of $10.00 per preferred share plus accrued dividends. |
