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Increases Estimated Aggregate Shareholder Liquidating Distribution Range to $20.00–$21.00 Per Common Share
CHICAGO, November 15, 2024--(BUSINESS WIRE)--Equity Commonwealth (NYSE: EQC) (the "Company") announced today that its Board of Trustees has authorized an initial cash liquidating distribution of $19.00 per common share (the "Initial Liquidating Distribution") which will be paid on December 6, 2024 to shareholders of record on November 25, 2024. The Company is also updating the estimated aggregate shareholder liquidating distribution range of $19.50 to $21.00 per common share disclosed in its definitive proxy statement filed on October 2, 2024 (the "Definitive Proxy") to an estimated aggregate shareholder liquidating distribution range of $20.00 to $21.00 per common share.
In addition, the Company announced today that, in connection with the Initial Liquidating Distribution, the New York Stock Exchange ("NYSE") has determined that the ex-dividend date for the Initial Liquidating Distribution will be December 9, 2024 (the "Ex-Dividend Date"), the first business day after the payment date.
Because the payment of the Initial Liquidating Distribution represents more than 25% of the price of the Company’s common shares, NYSE has determined that the Company’s common shares will trade with "due bills" representing an assignment of the right to receive the Initial Liquidating Distribution from the record date of November 25, 2024 through the closing of trading on NYSE on the payment date of December 6, 2024 (this period of time representing the "Dividend Right Period"). Thus, the Company’s common shares will trade with this "due bill" and the assignment of the right to receive the Initial Liquidating Distribution during the Dividend Right Period, which is through and includes the payment date.
Shareholders who sell their common shares during the Dividend Right Period will be selling their right to the Initial Liquidating Distribution, and such shareholders will not be entitled to receive the Initial Liquidating Distribution. Due bills obligate a seller of common shares to deliver the Initial Liquidating Distribution payable on such common shares to the buyer and holder of the common shares as of the payment date (the "Dividend Right"). The record date of November 25, 2024 will be used as the date for establishing the due bill tracking of the Dividend Right to the holder of common shares.
Due bill obligations are settled customarily between the brokers representing the buyers and the sellers of shares. The Company has no obligation for either the amount of the due bill or the processing of the due bill. Buyers and sellers of the Company’s common shares should consult their brokers before trading to be sure they understand the effect of NYSE’s due bill procedures.