Allstate Corp. will redeem all 11,500 of its outstanding series A preferred shares on Jan. 15, 2020, for a total redemption payment of $287.5 million.
The redemption will include the corresponding depositary shares, each representing a 0.001 interest in a preferred share. The depositary shares will be redeemed at $25 apiece.
The company will use the proceeds from its Nov. 8 issuance of $300 million of its 4.75% series I fixed-rate noncumulative perpetual preferred shares to fund the redemption. The dividend rate of the securities to be redeemed is 5.625%.
On Jan. 15, 2019, a dividend in the amount of approximately 35 cents per series A share will be paid in cash to holders of record at the close of business as of Dec. 31. On and after the redemption date, the series A preferred shares will no longer be deemed outstanding, and no further dividends will be declared or payable.