BLUE BELL, PA — BrightView Holdings, Inc. (NYSE: BV) announced that its Board of Directors has declared a cash dividend of $8.91 million on its Series A Preferred Stock. This dividend covers the period from March 31, 2024, to June 30, 2024, and will be paid on July 1, 2024. Shareholders of record as of June 15, 2024, will receive the payment.
This marks the second consecutive quarterly cash dividend for BrightView, reflecting the company’s financial stability and its commitment to avoiding the dilutive impact of payment in kind.
In August 2023, BrightView entered into an investment agreement with an affiliate of One Rock Capital Partners, LLC. Under this agreement, BrightView issued and sold 500,000 shares of its Series A Convertible Preferred Stock in a private placement. The total purchase price was $500 million. These shares are convertible into BrightView common stock at a conversion price of $9.44 per share.
The Series A Preferred Stock carries a 7.0% annual dividend rate, compounding quarterly. BrightView can choose to pay these dividends either in cash or by issuing additional stock.
Earnings from this preferred stock issuance have provided BrightView with significant capital, contributing to its ongoing financial health and enabling consistent dividend payments. By opting for cash dividends, BrightView aims to maintain shareholder value without increasing the number of shares outstanding.
BrightView’s decision to secure funding through preferred stock sales and its consistent dividend payments demonstrate the company’s strategic financial management. This approach ensures that shareholders benefit from regular returns while the company retains flexibility in managing its finances.
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