What happens if shareholders VOTE AGAINST and do not approve the amendment to our charter to increase the number of authorized shares of capital stock?
There will be several significant adverse consequences for us and our shareholders if the proposal to amend our charter to increase the number of authorized shares of capital stock is not approved. First, if the charter amendment is not approved, the interest rate on our senior subordinated secured notes due 2015 will remain at 18% per annum, instead of being reduced to 12%. This means that we will make additional annual interest payments of approximately $69 million to the holders of those notes until the notes are repaid. Second, our new investors under the Principal Participation Agreement will be entitled to 100% of the principal payments on a significant portfolio of mortgage-backed securities generally commencing on March 19, 2009 through March 31, 2015. The investors in the Principal Participation Agreement would also be entitled to a payment on March 31, 2015 equal to the fair market value of the mortgage-backed securities subject to the reverse repurchase agreements in excess
Related Questions
- Are shareholders who have not yet exchanged their Wendy’s shares for the Wendy’s/Arby’s Group, Inc. shares eligible to vote at the 2009 Annual Meeting of Stockholders?
- What happens if shareholders VOTE AGAINST and do not approve the amendment to our charter to increase the number of authorized shares of capital stock?
- How do shareholders benefit if the amendment to our charter to increase the number of authorized shares is approved?
