Compass Diversified Declares Second Quarter 2022 Distributions on Common and Series A, B and C Preferred Shares
01 Juli 2022 - 10:15PM
Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an
owner of leading middle market businesses, announced today that its
Board of Directors (the “Board”) has declared a quarterly cash
distribution of $0.25 per share on the Company’s common shares (the
“Common Shares”). The distribution for the three months ended June
30, 2022 is payable on July 28, 2022 to all holders of record of
Common Shares as of July 21, 2022.
The Board also declared a quarterly cash
distribution of $0.453125 per share on the Company’s 7.250% Series
A Preferred Shares (the “Series A Preferred Shares”). The
distribution on the Series A Preferred Shares covers the period
from, and including, April 30, 2022, up to, but excluding, July 30,
2022. The distribution for such period is payable on July 30, 2022
to all holders of record of Series A Preferred Shares as of July
15, 2022. The payment will occur on August 1, 2022, the next
business day following the payment date.
The Board also declared a quarterly cash
distribution of $0.4921875 per share on the Company’s 7.875% Series
B Preferred Shares (the “Series B Preferred Shares”). The
distribution on the Series B Preferred Shares covers the period
from, and including, April 30, 2022, up to, but excluding, July 30,
2022. The distribution for such period is payable on July 30, 2022
to all holders of record of Series B Preferred Shares as of July
15, 2022. The payment will occur on August 1, 2022, the next
business day following the payment date.
The Board also declared a quarterly cash
distribution of $0.4921875 per share on the Company’s 7.875% Series
C Preferred Shares (the “Series C Preferred Shares”). The
distribution on the Series C Preferred Shares covers the period
from, and including, April 30, 2022, up to, but excluding, July 30,
2022. The distribution for such period is payable on July 30, 2022
to all holders of record of Series C Preferred Shares as of July
15, 2022. The payment will occur on August 1, 2022, the next
business day following the payment date.
CODI’s common and preferred cash distributions
should generally constitute “qualified dividends” for U.S. federal
income tax purposes to the extent paid from “earnings and profits”
(as determined under U.S. federal income tax principles), provided
that the requisite holding period is met. To the extent that the
amount of the cash distributions exceeds earnings and profits, such
distribution will first be treated as a non-taxable return of
capital to the extent of the holder’s adjusted tax basis in the
shares, and thereafter be treated as capital gain from the sale or
exchange of such shares. In addition, shareholders subject to tax
rules regarding “unrelated business taxable income” (or “UBTI”)
will no longer be allocated UBTI from CODI allowing ownership by
certain retirement accounts that previously created tax
implications.
About Compass Diversified
Since its founding in 1998, CODI has consistently
executed on its strategy of owning and managing a diverse set of
highly defensible, middle-market businesses across the niche
industrial and branded consumer sectors. The Company leverages its
permanent capital base, long-term disciplined approach, and
actionable expertise to maintain controlling ownership interests in
each of its subsidiaries, maximizing its ability to impact
long-term cash flow generation and value creation. The Company
provides both debt and equity capital for its subsidiaries,
contributing to their financial and operating flexibility. CODI
utilizes the cash flows generated by its subsidiaries to invest in
the long-term growth of the Company and has consistently generated
strong returns through its culture of transparency, alignment and
accountability. For more information, please visit
compassdiversified.com.
Forward Looking Statements
This press release contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, including statements with regard to the
expectations related to the future performance of CODI. Words such
as "believes," "expects," “will,” “anticipates,” “intends,”
“continue,” "projects," “potential,” “assuming,” and "future" or
similar expressions, are intended to identify forward-looking
statements. These forward-looking statements are subject to the
inherent uncertainties in predicting future results and conditions,
some of which are not currently known to CODI. In addition to
factors previously disclosed in CODI’s reports filed with the SEC,
the following factors, among others, could cause actual results to
differ materially from forward-looking statements: changes in the
economy, financial markets and political environment; risks
associated with possible disruption in CODI’s operations or the
economy generally due to terrorism, natural disasters, social,
civil and political unrest or the COVID-19 pandemic; future changes
in laws or regulations (including the interpretation of these laws
and regulations by regulatory authorities); general considerations
associated with the COVID-19 pandemic and its impact on the markets
in which we operate; and other considerations that may be disclosed
from time to time in CODI’s publicly disseminated documents and
filings. Further information regarding CODI and factors which could
affect the forward-looking statements contained herein can be found
in CODI’s annual reports on Form 10-K, quarterly reports on Form
10-Q and current reports on Form 8-K. Forward-looking statements
speak only as of the date they are made. Except as required by law,
CODI undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor Relations
Gateway GroupCody
Slach949.574.3860CODI@gatewayir.com
Media Relations
The IGB GroupLeon
Berman212.477.8438lberman@igbir.com
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