Universal Technical Institute, Inc. Announces Conversion of All Series A Preferred Stock Into Common Stock, Effective December 18, 2023
Portfolio Pulse from Benzinga Newsdesk
Universal Technical Institute, Inc. (NYSE:UTI) has converted all its Series A Preferred Stock into Common Stock, effective December 18, 2023. This conversion increases the outstanding Common Stock by 19.3 million shares. Prior to the conversion, UTI bought back 33,300 shares of Series A Preferred Stock from Coliseum Capital Management, LLC, which were convertible into 1,000,000 shares of Common Stock. Additionally, Chris Shackelton of Coliseum has been appointed as a Class III director on UTI's board.
December 19, 2023 | 1:38 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
UTI's conversion of Series A Preferred Stock to Common Stock may dilute current shareholders but also simplifies capital structure. Chris Shackelton's board appointment could bring positive strategic insights.
The conversion of preferred stock to common stock typically dilutes the ownership percentage of existing shareholders, which could put downward pressure on the stock price. However, simplifying the capital structure can be viewed positively by the market. The appointment of Chris Shackelton to the board is likely to be seen as a positive development given his background and previous involvement with UTI, potentially offsetting any negative impact from the conversion.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100