Transaction has the effect of a $1.1 billion Class B share repurchase
SAN FRANCISCO, Dec. 22 /PRNewswire-FirstCall/ -- Visa Inc. (NYSE: V) today
reported that it has deposited $1.1 billion into the litigation escrow account
previously established under the company's retrospective responsibility plan
(the "Plan").
Under terms of the Plan, when Visa funds the litigation escrow its U.S.
financial institutions, the sole holders of Class B shares, bear the expense
via a reduction in their as-converted share count.
"This transaction not only adds the necessary funds to our litigation
escrow, but effectively acts as a $1.1 billion Class B share repurchase
program," said
Joseph Saunders
, Visa's chairman and chief executive officer.
"It has always been our stated intent to return excess cash to our
shareholders in the form of dividends and share repurchases. We are obviously
pleased that our strong financial position and excess cash flow allows us to
do this."
The Plan was established at the time of Visa's initial public offering.
It provides coverage and a payment mechanism for judgments or settlements in
specific U.S. legal cases, protecting Visa and its Class A and Class C
shareholders from any direct losses.
The deposit of the funds into the escrow account reduces the conversion
ratio applicable to Visa's Class B common stock outstanding from 0.7143 per
Class A share to 0.6296 per Class A share. On a converted basis, the
245,513,385 Class B shares currently outstanding are equal to 154,566,658
Class A shares of common stock.
The deposit of loss funds has the effect of a repurchase of 20,800,824
Class A common share equivalents from the Company's Class B shareholders. The
amount paid per share represents the volume weighted average price (VWAP) of
the Company's Class A common shares for the 15-day trading period December 1,
2008 to December 19, 2008.
About Visa: Visa operates the world's largest retail electronic payments
network providing processing services and payment product platforms. This
includes consumer credit, debit, prepaid and commercial payments, which are
offered under the Visa, Visa Electron, Interlink and PLUS brands. Visa enjoys
unsurpassed acceptance around the world and Visa/PLUS is one of the world's
largest global ATM networks, offering cash access in local currency in more
than 170 countries. For more information, visit www.corporate.visa.com
Contacts:
Jack Carsky or
Victoria Hyde-Dunn
, Investor Relations
Visa Inc.
Tel: +1 415 932 2213
E-mail: ir@visa.com
Paul Cohen
or
Sandra Chu
, Media Relations
Visa Inc.
Tel: +1 415 932 2564
E-mail: globalmedia@visa.com
SOURCE Visa Inc.
12/22/2008
CONTACT: Jack Carsky or
Victoria Hyde-Dunn
, Investor Relations,
+1-415-932-2213, ir@visa.com;
Paul Cohen
or
Sandra Chu
, Media Relations,
+1-415-932-2564, globalmedia@visa.com, all of Visa Inc.
Web Site: http://www.corporate.visa.com