SAN FRANCISCO – Visa on Thursday said it will be converting another $150 million worth of its Class B shares owned by credit unions and banks to help fund its share of last week’s $7.25 billion antitrust settlement with merchants.
Visa, which agreed to pay $4.4 billion of the historic settlement, deposited $1.6 billion into the litigation escrow account in February, which it likewise obtained by converting Class B credit union and bank shares.
The conversion of the Class B shares was set under Visa’s 2008 initial public offering, in which the then-owners of the cards giant agreed to use some of the stock they obtained in the IPO to fund the litigation account for future settlements. Under the terms of the IPO, when Visa funds the litigation escrow its U.S. financial institutions and their affiliates and successors – the sole holders of Class B shares – bear a corresponding financial impact via a reduction in their as-converted share count.
Visa currently has $4.2 billion in its litigation escrow account.