LONDON, June 14, 2021 /CNW/ – Atlas Corp. (ATCO) (“Atlas”) (NYSE: ATCO) today announced its intention to redeem all of its outstanding 8.25% Series E Cumulative Redeemable Perpetual Preferred Shares (NYSE: ATCO-PE) (the “Series E Preferred Shares”) and outstanding 8.20% Series G Cumulative Redeemable Perpetual Preferred Shares (NYSE: ATCO-PG) (the “Series G Preferred Shares” and together with the Series E Preferred Shares, the “Redeemed Shares”) for cash on July 1, 2021 (the “Redemption Date”). The redemption price per Redeemed Share will be equal to $25.00 plus all accrued and unpaid dividends to the Redemption Date, for an aggregate total of approximately $137 million for the Series E Preferred Shares and $198 million for the Series G Preferred Shares.
Graham Talbot, CFO of Atlas, commented, “Following strong success of strategic unsecured and long-term secured capital raises over the past six months, we are allocating approximately $335 million of our significant liquidity to redeem these high-cost preferred shares. We continue to reduce our weighted average cost of capital with takeout of these 8.22% average cost instruments. We are pleased to execute on plan to create a simple, balanced and highly flexible capital stack, creating greater transparency and agility in our balance sheet and liquidity profile. This is a continuous process of optimization to further position our balance sheet for continued quality growth and advancement of our market leadership.”
As previously announced, Atlas paid a dividend on April 30, 2021, of $0.515625 and $0.5125 per Series E Preferred Share and Series G Preferred Share, respectively, for the period from January 30, 2021, to April 29, 2021. This will be the final quarterly dividend on the Redeemed Shares, although holders will receive on redemption of the Series E Preferred Shares and Series G Preferred Shares all accrued and unpaid dividends up to but excluding the Redemption Date.