wrestling / News

Vince McMahon Moves to Boost WWE’s Liquidity During COVID-19 Pandemic

March 24, 2020 | Posted by Jeremy Thomas
WWE Vince McMahon, Samoa Joe WWE

Vince McMahon has taken steps to provide WWE with more liquidity as the company weathers the effects of the COVID-19 pandemic. Seeking Alpha has an 8-K filing with the SEC from WWE which shows that McMahon entered into a variable prepaid forward contract that covers about 3.5 million shares of Class B common stock in WWE.

The filing notes that “Mr. McMahon entered into the variable prepaid forward contract to provide current liquidity while allowing him to maintain voting and ordinary dividend rights in the stock, as well as the ability to participate in future stock price appreciation, during the term of the contract and thereafter if Mr. McMahon settles the variable prepaid forward contract in cash.” In other words, it maintains McMahon’s voting rights while adding some cash to the company’s ledger so that it can better deal with difficulties placed upon it by the coronavirus outbreak.

The contract will settle on specific dates in March of 2023, with the shares covered by the contract representing about 4.5% of the total class A and B shares of common stock.

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Vince McMahon, WWE, Jeremy Thomas