Sensormatic Announces Dividend On Convertible Preferred Stock.
Sensormatic Electronics Corporation (NYSE:SRM) announced today the declaration of the quarterly dividend on its Depositary Shares, each representing a one-tenth interest in a share of 6 1/2% Convertible Preferred Stock.
The dividend will be payable on January 3, 2000 to holders of record of the Depositary Shares as of December 22, 1999. In accordance with the formula established under the terms of the Convertible Preferred Stock, the dividend payment will be made in Sensormatic Common Stock, at a rate of 0.0284318 shares of Common Stock for each outstanding Depositary Share, based on a cash dividend equivalent amount of $0.40625 per Depositary Share. In payment of this dividend, Sensormatic will issue approximately 196,179 shares of Common Stock in the aggregate.
In accordance with the terms of the Preferred Stock Offering, effective August 12, 1998 (120 days after consummation of the Offering) and through the effective date of the Shelf Registration Statement, a premium payment of 0.25% per annum of the liquidation preference of the Preferred Stock will be included with the dividend payment. The January 3, 2000 premium payment will be made in Sensormatic Common Stock, at the rate of 0.0010389 shares of Common Stock for each outstanding Depositary Share, based on a cash equivalent amount of $0.015625 per Depositary Share. In payment of this premium, Sensormatic will issue approximately 7,168 additional shares of Common Stock in the aggregate. In the event that the Registration Statement referred to below becomes effective prior to year-end, the foregoing amounts will be slightly reduced.
The shares of Sensormatic's Common Stock previously issued as dividends or premium payments on the Depositary Shares are not currently registered under the Securities Act of 1933, as amended. Sensormatic has filed a Shelf Registration Statement with the Securities and Exchange Commission (SEC) to cover resales of these shares as well as the Depositary Shares, the Preferred Stock and the Common Stock issuable upon conversion of the Preferred Stock or in payment of further dividends on the Preferred Stock and any additional premium payments. The Company's registration statement is currently in the review process with the SEC.
Sensormatic Electronics Corporation is a leading supplier of electronic security systems to the retail, commercial and industrial marketplaces. Sensormatic is also a leader in integrated source tagging - a process where consumer goods manufacturers insert anti-theft tags at the point of manufacturing or packaging. For more information on Sensormatic, visit its homepage on the World Wide Web at http://www.sensormatic.com.