Satellite services provider Intelsat (NYSE:I) announced yesterday its second-quarter dividend of $0.799 per share on its 5.75% Series A mandatory convertible junior non-voting preferred stock, which trades on the NYSE under the symbol I.PRA.
Each Series A preferred share will automatically convert on May 1, 2016, into between 2.2676 and 2.7778 common shares. The number of shares issuable on conversion will be determined based on the average of the closing prices per share over the 40-trading-day period ending on the third trading day prior to the mandatory conversion date, the company said. They may be converted at any time before then at the minimum conversion rate of 2.2676 shares per Series A preferred share.
The board of directors said the dividend is payable on Aug. 1 to the holders of record at the close of business on July 15. The payout reflects preferred dividends accrued during the 100-day period starting on the date of the satellite service provider's initial offering of preferred shares, or April 23, and ending July 31.
Intelsat does not pay a dividend on its common stock.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.