Investor FAQs

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What is the November 2 Stock/Cash Dividend?

On November 2, 2021, SuRo Capital’s Board of Directors declared a dividend of $2.00 per share payable on December 30, 2021 to the Company’s common stockholders of record as of the close of business on November 17, 2021.  The ex-dividend date is November 16, 2021.  As described more fully below, the dividend will be paid in cash or shares of the Company's common stock at the election of shareholders, although the total amount of cash to be distributed to all shareholders will be limited to no more than 50% of the total dividend to be paid to all shareholders.  

This dividend is being made in accordance with certain applicable Treasury regulations, and guidance issued by the Internal Revenue Service (“IRS”) that allow a publicly-traded regulated investment company to satisfy its distribution requirements from a distribution paid partly in common stock provided certain other requirements are satisfied. 

For more information on the dividend, please see our November 3, 2021 press release: 
https://investors.surocap.com/news-releases/news-release-details/suro-capital-corp-reports-third-quarter-2021-financial-results

 

How does the split between stock/cash work?

Each registered shareholder will have the opportunity to elect to receive the dividend in cash or in shares of the Company's common stock.  Registered shareholders electing to receive the dividend in shares of the Company's common stock will receive their entire dividend in the form of shares of the Company's common stock regardless of the elections made by any other shareholders.  However, the total amount of cash to be distributed to all shareholders electing to receive their dividends in cash will be limited to no more than 50% of the total amount to be distributed to all shareholders.  In the event the amount of cash to be distributed to all shareholders electing to receive the dividend in cash would exceed 50% of the total dividend, each registered shareholder electing to receive cash will receive a pro rata portion of the total cash to be distributed based on the number of shares held by each such shareholder.  The remainder of the dividend in excess of a shareholder's pro rata share of the total amount of cash to be distributed will be paid in the form of shares of the Company's common stock.

If the total portion of the dividend to be paid to stockholders electing to receive cash exceeds 50% of the total dividend, each such stockholder electing to receive cash will receive an allocable portion of the total cash to be distributed and the remaining portion of the dividend will be paid in shares of SuRo Capital’s common stock.

If a shareholder elects to receive shares of common stock, 100% of such shareholder’s dividend will be paid in shares of SuRo Capital’s common stock.  If a registered shareholder does not make an election, they will be deemed to have elected to receive 100% of their dividend in shares of SuRo Capital common stock.

The number of shares of our common stock to be issued to shareholders receiving all or a portion of the dividend in shares of our common stock is $13.39 per share, based on the volume weighted average price per share of our common stock on the Nasdaq Capital Market on November 10, 11, and 12, 2021, less $2.00 to reflect the declared dividend.

How do I make an election?

Please contact your bank, broker, or nominee.  Shareholders who hold their shares through a bank, broker, or nominee will not receive an election form from SuRo Capital or AST and should contact their bank, broker, or nominee for instructions on how to make an election.  All elections must be made through a bank, broker, or nominee or AST for registered shareholders.  Shareholders who hold their shares through a bank, broker, or nominee are encouraged to contact their bank, broker, or nominee and inform them of the election that should be made on the shareholder’s behalf.  If a shareholder’s bank, broker, or nominee, on the shareholder’s behalf, does not timely return a properly completed Election Form by the Election Date, the shareholder will have been deemed to have elected to receive 100% of the Dividend in the form of shares of our common stock.  Please contact your bank, broker, or nominee.  If your bank, broker, or nominee needs additional information, please encourage them to contact AST at (800) 937-5449.  SuRo Capital does not directly accept or process any elections related to this dividend.

For each of those shareholders who holds shares of SuRo Capital common stock through a bank, broker, or nominee, the shares of our common stock and cash to which such shareholder is entitled will be delivered by the transfer agent through The Depository Trust Company to such shareholder’s bank, broker, or nominee. The bank, broker or nominee will then allocate the shares and cash into such shareholder’s individual account.

SuRo Capital has caused an election form to receive cash or common stock only to registered shareholders promptly after the November 17, 2021 record date.  Registered shareholders are those shareholders who own their stock directly and not through a bank, broker, or nominee.  The completed election form must be received by SuRo Capital Corp.'s transfer agent, American Stock Transfer, prior to 5:00 p.m. (EST) on December 17, 2021.  Registered shareholders with questions regarding the dividend may call American Stock Transfer at (800) 937-5449.  Registered shareholders who do not make an election will be deemed to have elected to receive 100% of their dividend in shares of the Company's common stock.

Registered shareholders participating in the Company's dividend reinvestment plan will also receive an election form.  The investment feature of the dividend reinvestment plan will be suspended for this distribution and will be reinstated after this distribution has been completed.

What if I don’t make an election?
Registered shareholders who do not make an election will be deemed to have elected to receive 100% of their dividend in shares of SuRo Capital common stock.
What is the value of each share of stock issued in the dividend based on?

The number of shares of SuRo Capital’s common stock to be issued to shareholders receiving all or a portion of the dividend in shares of common stock is $13.39 per share, based on the volume weighted-average price per share of SuRo Capital’s common stock on the Nasdaq Capital Market on November 10, 11 and 12, 2021, less $2.00 to reflect the declared dividend.  Such volume weighted-average price per share, less the $2.00 declared dividend, for such dates is approximately $13.39 per share.  

For more information:
https://investors.surocap.com/sec-filings/sec-filing/8-k/0001104659-21-138571

 

What if my bank, broker, or nominee doesn’t have any information on the dividend or related election?
Please have your bank, broker, or nominee contact AST at (800) 937-5449.
What if I am enrolled in the Dividend Reinvestment Program (“DRIP”)?
Registered shareholders in SuRo Capital’s dividend reinvestment plan will also receive an election form. The investment feature of the dividend reinvestment plan will be suspended for this distribution and will be reinstated after this distribution has been completed.
What is the anticipated tax treatment of the cash/stock dividend?

Regardless of whether a shareholder receives the dividend in cash, stock, or some combination of cash and stock, the entire amount of this dividend will be fully taxable to shareholders and SuRo Capital will report the actual tax characteristics of each year's dividends annually to shareholders and the IRS on Form 1099-DIV.

The aggregate amount of the dividends declared and paid by SuRo Capital will be fully taxable to shareholders. The tax character of SuRo Capital’s dividends cannot be finally determined until the close of SuRo Capital’s taxable year (December 31). SuRo Capital will report the actual tax characteristics of each year’s dividends annually to stockholders and the IRS on Form 1099-DIV subsequent to year-end.