Advanta Announces Conversion of Its Mandatorily Convertible Class B Preferred Shares.SPRING HOUSE, Pa.--(BUSINESS WIRE)--Sept. 15, 1999-- Advanta Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ADVNB; ADVNA ADVNA Advanta Corporation (stock symbol) ; ADVNZ) announced that following the close of trading today, Depositary Shares issued in respect of its 6.75% Convertible Class B Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , Series 1995 (the "Preferred Stock") will automatically convert into shares of the Company's Class B Common Stock. There are a total of approximately 1.4 million Depositary Shares currently outstanding, each representing an interest of one-hundredth of a share of the Preferred Stock. Each Depositary Share issued in respect of the Preferred Stock, which is traded under the symbol ADVNZ, will be exchanged for one share of the Company's Class B Common Stock, which is traded under the symbol ADVNB. The last quarterly dividend payment on the Preferred Stock will be paid today, after which dividends on the Preferred Stock will cease to accumulate. This conversion of the Preferred Stock will not adversely affect the Company's 1999 basic or diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . Advanta is a highly focused financial services company with over 2,400 employees, approximately $12.4 billion in managed assets and approximately $9.4 billion in assets serviced for third parties. Advanta provides consumers and small businesses with innovative products and services including mortgages, equipment leases, business credit cards, insurance and deposit products. The Company also provides a full range of loan purchasing, contract servicing and securitization services to the mortgage industry. Any statements released by Advanta that are forward looking are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that any forward-looking statements involve risks and uncertainties, which may affect the Company's business and prospects. Risks that may affect future performance are detailed in the Company's filings with the SEC. |
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