The utility company (NYSE: SR) has reaffirmed plans to redeem all outstanding 5.90% Series A Cumulative Redeemable Perpetual Preferred Stock, a move that will retire roughly $250 million in preferred equity and eliminate future dividend obligations tied to the securities.

The redemption, first disclosed earlier, is scheduled for February 13, 2026, and applies to all 10,000 outstanding Series A preferred shares, along with their associated depositary shares (NYSE: SR.PRA). Each depositary share represents a 1/1000th interest in a single share of preferred stock.

For investors, the mechanics are straightforward—but the implications point to a broader trend of issuers reshaping capital structures as interest rates and financing conditions evolve.

What’s Being Redeemed—and at What Price

Spire will redeem the Series A preferred shares at the standard $25.00 per depositary share, equivalent to a $25,000 liquidation preference per preferred share. That base redemption amount will be paid to holders on the redemption date.

In addition, shareholders of record as of January 26, 2026 will receive a final quarterly dividend of $0.36875 per depositary share, payable on February 17, 2026. This dividend represents all accrued and unpaid dividends through—but not including—the redemption date.

Importantly, Spire is splitting the payment into two parts:

• February 13, 2026: Redemption of depositary shares at $25.00 per share

• February 17, 2026: Payment of the previously declared quarterly dividend to holders of record

After those payments are made, the company will have no further dividend or financial obligations related to the Series A preferred stock.

Why This Matters

While preferred stock redemptions are not unusual, timing matters. Many companies issued higher-coupon preferred securities during periods of lower rates or heightened uncertainty. As balance sheets stabilize and financing strategies shift, issuers are increasingly choosing to redeem these instruments rather than continue paying relatively expensive dividends.

At 5.90%, Spire’s Series A preferred dividend sits well above what many investment-grade issuers can now achieve through alternative financing or internal cash flow. Retiring the preferred shares reduces ongoing dividend expense and simplifies the company’s capital stack—an outcome often viewed favorably by common equity investors.

For preferred shareholders, the redemption delivers predictability: par value plus all accrued dividends, with no ambiguity around future payments.

What Happens Next for Investors

Holders do not need to take action to receive the redemption proceeds, assuming their shares are held in street name through a broker. Depositary shares will be automatically redeemed on the redemption date, with dividends paid shortly thereafter to eligible holders.

Spire has directed any questions or requests for official redemption materials to Computershare Trust Company, N.A., which is handling the process.

Once the redemption is complete, the Series A preferred stock and its depositary shares will cease to exist, and Spire will no longer carry preferred equity obligations tied to this issuance.

The Bigger Picture

Spire’s move fits into a broader pattern across utilities and infrastructure-heavy companies: tightening capital structures, reducing higher-cost instruments, and positioning for long-term stability rather than yield-driven financing.

For income-focused investors, it’s another reminder that callable preferred stock carries reinvestment risk—especially when issued with coupons that may look generous a few years later. For issuers, it’s a reminder that optionality embedded in preferred securities can become a strategic lever when market conditions change.

In Spire’s case, the lever is being pulled deliberately and cleanly—bringing a decade-long preferred issuance to a tidy close.

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