Via Renewables Announces a Redemption of 287,294 Shares of Its 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock

Rhea-AI Summary

Via Renewables (NASDAQ:VIASP) has announced the redemption of 287,294 shares of its 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock. The redemption will occur on October 15, 2025, at a redemption price of $25.00 per share in cash.

The redemption process will be conducted through The Depository Trust Company (DTC), with Equiniti Trust Company serving as the transfer agent. Since the company has already declared dividends payable on the redemption date, no additional accumulated or unpaid dividends will be added to the redemption price.

The announcement represents a significant capital structure adjustment for Via Renewables, potentially affecting the company's future dividend obligations and capital allocation strategy.

Positive

• Reduction in preferred dividend obligations by retiring high-cost 8.75% preferred shares
• Strategic capital structure optimization through partial redemption of preferred stock
• Clear redemption process through established financial institutions (DTC and Equiniti)

Negative

• Cash outflow of approximately $7.18 million for the redemption ($25.00 × 287,294 shares)
• Reduction in available capital that could have been used for operations or growth

Insights

Financial Analyst

Via Renewables is redeeming 287,294 preferred shares at $25 per share, signaling financial flexibility but reducing dividend-paying securities.

Via Renewables has announced a partial redemption of its Series A preferred stock, affecting 287,294 shares at the redemption price of $25.00 per share. This represents a capital deployment of approximately $7.18 million to redeem these shares. The timing is notable as the redemption date (October 15, 2025) coincides with a dividend payment date, allowing the company to cleanly execute the transaction without additional accumulated dividend calculations.

This partial redemption suggests Via Renewables has sufficient liquidity to reduce its preferred equity layer. The 8.75% Series A shares represent a relatively expensive form of capital given their high dividend rate. By redeeming these shares, the company eliminates the obligation to pay the 8.75% dividend on the redeemed portion, which translates to annual savings of about $628,000 in dividend payments.

The redemption likely reflects management's confidence in the company's operating cash flow and overall financial position. For remaining preferred shareholders, this action shouldn't trigger concerns, as partial redemptions are a normal feature of preferred securities. For common shareholders, this represents a positive development as it reduces claims on the company's cash flow that sit ahead of common dividends in the capital structure.

While the announcement doesn't specify if this is part of a larger capital restructuring strategy, the decision to redeem preferred shares often indicates a company is optimizing its capital structure by reducing higher-cost capital components. This financial engineering should improve Via Renewables' weighted average cost of capital, potentially creating more value for common shareholders.

HOUSTON, TX / ACCESS Newswire / September 15, 2025 / Via Renewables, Inc. ("Via Renewables" or the "Company") (NASDAQ:VIASP), an independent retail energy services company, announced today that it will redeem 287,294 shares of its 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share (the "Series A Preferred Stock" or the "shares"), at a redemption price equal to $25.00 per share in cash, plus an amount equal to all accumulated and unpaid dividends thereon (the "Redemption Price") to, but not including, the redemption date of October 15, 2025 (the "Redemption"). Because the Company has declared dividends on the Series A Preferred stock payable on October 15, 2025, no such amounts will be unpaid as of the Redemption date, as such, the Redemption Price shall equal $25.00 per share.

All shares of Series A Preferred Stock are issued in book-entry form only through the facilities of The Depository Trust Company ("DTC"). Accordingly, the redemption of the Series A Preferred Stock, including payment of the redemption price, will be completed according to DTC's procedures. A Notice of Partial Redemption will be given today to the holders of Series A Preferred Stock. Payment to DTC for the Series A Preferred Stock so redeemed will be made by Equiniti Trust Company ("Equiniti"), as transfer agent. Additional information related to the Redemption procedures, including copies of the Notice of Partial Redemption, may be obtained from Equiniti by calling 718-921-8317.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. These forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), can be identified by the use of forward-looking terminology including "may," "should," "could," "likely," "will," "believe," "expect," "anticipate," "estimate," "continue," "plan," "intend," "project," or other similar words. All statements, other than statements of historical fact, included in this press release are forward-looking statements. The forward-looking statements include statements regarding the impacts of Winter Storm Uri, cash flow generation and liquidity, business strategy, prospects for growth and acquisitions, outcomes of legal proceedings, the timing, availability, ability to pay and amount of cash dividends on our Series A Preferred Stock, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans, objectives, beliefs of management, availability and terms of capital, competition, government regulation and general economic conditions. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurance that such expectations will prove correct.

The forward-looking statements in this press release are subject to risks and uncertainties. Important factors that could cause actual results to materially differ from those projected in the forward-looking statements include, but are not limited to:

• the ultimate impact of the Winter Storm Uri, including future benefits or costs related to ERCOT market securitization efforts, and any action by the State of Texas, ERCOT, the Railroad Commission of Texas, or the Public Utility Commission of Texas;

• changes in commodity prices, the margins we achieve, and interest rates;

• the sufficiency of risk management and hedging policies and practices;

• the impact of extreme and unpredictable weather conditions, including hurricanes, heat waves and other natural disasters;

• federal, state and local regulations, including the industry's ability to address or adapt to potentially restrictive new regulations that may be enacted by public utility commissions;

• our ability to borrow funds and access credit markets;

• restrictions and covenants in our debt agreements and collateral requirements;

• credit risk with respect to suppliers and customers;

• our ability to acquire customers and actual attrition rates;

• changes in costs to acquire customers;

• accuracy of billing systems;

• our ability to successfully identify, complete, and efficiently integrate acquisitions into our operations;

• significant changes in, or new changes by, the independent system operators ("ISOs") in the regions we operate;

• risks related to our recently completed Merger (as defined below) including the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted against us and others relating to the Merger or otherwise, the impact of the Merger on our operations and the amount of the costs, fees, expenses and charges related to Merger;

• competition; and

• the "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, subsequent Quarterly Reports on Form 10-Q, and other public filings and press releases.

You should review the risk factors and other factors noted throughout this press release that could cause our actual results to differ materially from those contained in any forward-looking statement. All forward-looking statements speak only as of the date of this press release. Unless required by law, we disclaim any obligation to publicly update or revise these statements whether as a result of new information, future events or otherwise. It is not possible for us to predict all risks, nor can we assess the impact of all factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

ABOUT VIA RENEWABLES, INC.

Via Renewables, Inc. is an independent retail energy services company founded in 1999 that provides residential and commercial customers in competitive markets across the United States with an alternative choice for their natural gas and electricity under our well-established and well-regarded brands, including Spark Energy, Major Energy, Provider Power, and Verde Energy. Headquartered in Houston, Texas, Via Renewables currently operates in 21 states and DC and serves 106 utility territories. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.

We use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Investors should note that new materials, including press releases, updated investor presentations, and financial and other filings with the Securities and Exchange Commission are posted on the Via Renewables Investor Relations website at ViaRenewables.com. Investors are urged to monitor our website regularly for information and updates about the Company.

Contact: Via Renewables, Inc.

Investors:

Stephen Rabalais, 832-200-3727

Media:

Kira Jordan, 832-255-7302

SOURCE: Via Renewables, Inc.

View the original press release on ACCESS Newswire

FAQ

How many shares of Series A Preferred Stock is Via Renewables (VIASP) redeeming in October 2025?

Via Renewables is redeeming 287,294 shares of its 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock.

What is the redemption price for Via Renewables' (VIASP) preferred stock redemption?

The redemption price is $25.00 per share in cash, with no additional accumulated or unpaid dividends since dividends are already declared payable on the redemption date.

When will Via Renewables (VIASP) complete the preferred stock redemption?

The redemption will be completed on October 15, 2025 through The Depository Trust Company (DTC).

How can Via Renewables (VIASP) preferred stockholders get information about the redemption?

Stockholders can contact Equiniti Trust Company, the transfer agent, by calling 718-921-8317 for additional information about the redemption procedures.

What is the total value of Via Renewables' (VIASP) preferred stock redemption?

The total redemption value is approximately $7.18 million, calculated as 287,294 shares multiplied by the $25.00 per share redemption price.