Iron Mountain +2.7% AH, approves REIT Protection Rights Agreement

Iron Mountain (IRM) shares jump 2.7% AH after the company discloses its board has approved a REIT Status Protection Rights Agreement providing for a dividend of one preferred stock purchase right for each share of common stock (Dec. 20 record date). Each right entitles the holder to purchase one-thousandth of a Series A Junior Preferred share for $114. (8-K)

The company intends to convert to the REIT structure no earlier than the taxable year beginning Jan. but "has not yet received from the [IRS] the private letter rulings it believes it requires ... Nevertheless, the Company ... will begin to operate its business in a manner consistent with being a REIT effective January 1."

The company entered the rights agreement to protect its potential conversion to a REIT by preventing "concentrated ownership" of common equity. IRM will seek shareholder approval to impose ownership limitations into its charter upon successful conversion to a REIT.

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Comments (3)
  • MutualFundMonday
    , contributor
    Comments (144) | Send Message
    Just an administrative move they made for the REIT conversion. No insight into IRS approval. I still expect them to get it.
    9 Dec 2013, 05:09 PM Reply Like
  • Alex2322
    , contributor
    Comments (332) | Send Message
    They should be a reit.
    10 Dec 2013, 01:20 AM Reply Like
  • artur92
    , contributor
    Comment (1) | Send Message
    Can someone explain the intrinsic value of the pref. Share rights?
    12 Jan 2014, 11:41 PM Reply Like
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