Welltower (WELL) coverage to improve on preferred stock conversion.
Welltower announced today that it had converted all of its outstanding 6.5% Series I Convertible Preferred Stock to equity. The conversion follows recent gains in WELL's share price, allowing the company to trigger mandatory conversion. The most recently quarterly dividend for the Series I preferred was $11.7 million. Assuming no other changes to WELL's capital structure, fixed charge coverage would improve on a pro forma basis from 3.1x for 4Q'18 to 3.4x. The company also stated "We are pleased to announce the successful conversion of our Series I Preferred Stock, eliminating the most expensive legacy component of Welltower's capital stack."