Capstead announces new conversion ratios for series A, B preferreds

By Devika Patel

Knoxville, Tenn., Nov. 3 - Capstead Mortgage Corp. said each of its series B preferred shares is convertible into 0.6047 shares effective Sept. 30, increased from 0.6014 shares, and each of its series A preferred shares is convertible into 1.5684 shares effective Oct. 1, increased from 1.5598 shares.

Holders of the series A and B preferred shares may convert their securities at any time. The company warned, however, that current market prices could make conversion costly, since any conversion made after preferred record dates within the quarter and before the record date for quarterly dividend payments will require holders to pay all preferred share dividends for that quarter.

The company also said it will pay a regular monthly dividend of $0.105 per share on the $1.26 cumulative convertible preferred stock, series B. The dividend is payable on Nov. 28 to preferred stockholders of record as of Nov. 17.

Capstead Mortgage is a Dallas-based real estate investment trust.

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