Investor FAQs

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What is the May 4 Stock/Cash Dividend?
On May 4, 2021, SuRo Capital’s Board of Directors declared a dividend of $2.50 per share payable on June 30, 2021 to the SuRo Capital common stockholders of record as of the close of business on May 18, 2021.  As described more fully below, the dividend will be paid in cash or shares of SuRo Capital 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 requirements are satisfied.

For more information on the dividend, please see our May 5, 2021 press release: 
https://investors.surocap.com/news-releases/news-release-details/suro-capital-corp-reports-first-quarter-2021-financial-results
How does the split between stock/cash work?

Each shareholder will have the opportunity to elect to receive the dividend in cash or in shares of the SuRo Capital common stock.  Shareholders electing to receive the dividend in shares of SuRo Capital common stock will receive their entire dividend in the form of shares of SuRo Capital 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 that 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 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 such shareholder's pro rata share of the total amount of cash to be distributed will be paid in the form of shares of SuRo Capital 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 SuRo Capital common stock to be issued to shareholders receiving all or a portion of the dividend in shares of SuRo Capital common stock will be based on the volume weighted average price per share of SuRo Capital common stock on the Nasdaq Capital Market on May 12, 13, and 14, 2021, less $2.50 to reflect the declared dividend.

How do I make an election?

Please contact your bank, broker, or nominee.  Registered shareholders should contact AST, as described below.

SuRo Capital has caused an election form to receive the dividend in cash or common stock to be mailed only to registered shareholders as of the May 18, 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's transfer agent, American Stock Transfer (“AST”), prior to 5:00 p.m. (EST) on June 16, 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 SuRo Capital common stock.

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.  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.
 

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 will be based on the volume weighted-average price per share of SuRo Capital’s common stock on the Nasdaq Capital Market on May 12, 13 and 14, 2021, less $2.50 to reflect the declared dividend.  Such volume weighted-average price per share, less the $2.50 declared dividend, for such dates is approximately $13.07 per share.  As a result, shareholders receiving all or a portion of the dividend in shares of SuRo Capital’s common stock will receive approximately 0.19 shares for each share owned by the shareholder as of the May 18, 2021 record date.

For more information:
https://www.sec.gov/Archives/edgar/data/1509470/000110465921068401/tm2116750d1_8k.htm
 
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.