Via Renewables will redeem 258,565 shares of its 8.75% Series A Fixed‑to‑Floating Rate Cumulative Redeemable Perpetual Preferred Stock at a cash price of $25 per share, plus $0.46714 per share of accumulated and unpaid dividends. The redemption will be completed on December 18 2025.
The company’s filing shows that 2,585,645 Series A shares were outstanding as of November 4 2025, so the redemption represents a 10.0% reduction in the preferred class rather than the 7.6% figure based on an older 3.37‑million‑share estimate. The total cash outlay for the redemption is approximately $6.46 million, excluding accrued dividends, and the transaction will lower the company’s future preferred dividend liability by $22.5 million per year (8.75% of the redeemed principal).
While the company has not disclosed the precise funding mechanism, the redemption is expected to be financed from its cash reserves, which stood at $X million at the end of the prior quarter. The move improves the preferred‑stock dividend coverage ratio, a key covenant in the company’s $205 million senior credit facility, and helps maintain compliance with the facility’s debt‑service coverage requirements. By reducing the preferred dividend obligation, the company also frees cash that can be deployed toward debt reduction, capital expenditures, or other strategic initiatives.
This redemption follows a pattern of systematic preferred‑stock retirements that began earlier in 2025. In May, the company redeemed 168,008 shares, and in September it redeemed 287,294 shares. The cumulative effect of these transactions is a steady contraction of the preferred capital stack, reflecting the company’s broader capital‑allocation strategy to strengthen its balance sheet and enhance financial flexibility.
Financially, Via Renewables reported nine‑month revenue of $335.615 million and operating income of $34.148 million as of September 30 2025. The reduction in preferred dividend obligations will lower the company’s fixed cash outflows, improving operating leverage and potentially increasing free cash flow. The freed cash can be used to pay down the senior credit facility or invest in growth initiatives, thereby supporting the company’s long‑term value creation objectives.
Overall, the redemption strengthens Via Renewables’ balance sheet, improves covenant compliance, and signals management’s confidence in the company’s liquidity position. By reducing the preferred dividend burden, the company enhances its financial flexibility, which can benefit both preferred and common shareholders through a more robust capital structure and a stronger capacity to meet future dividend commitments.
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