Franklin BSP Realty Trust Revises Conversion Terms for Series H Preferred Shares
The amended terms include a new mandatory conversion date and stricter limits on early conversion flexibility.
January 22, 2026
Franklin BSP Realty Trust Adjusts Conversion Timeline and Terms for Preferred Shares
Franklin BSP Realty Trust has updated the rules around how and when its Series H Convertible Preferred Shares convert into common stock. The company filed amended terms on January 22, 2026, changing both the mandatory and optional conversion features. These updates create a more defined process that shareholders will need to factor into their planning.
Here’s what’s changing: all Series H Preferred Shares will now convert to common shares on January 21, 2028. That’s the new Mandatory Conversion Date. This timeline replaces previous conversion milestones and applies even to shares with pending redemption notices—unless they’ve already been redeemed by that date. There’s built-in flexibility: the company and all Series H shareholders can agree to extend that date by one year at a time, if needed.
The filing also introduces a structured path for early conversions. From now through the month before the mandatory conversion, holders can elect to convert up to 4,487 Series H Preferred Shares each calendar month. They can only make this request once per month, and they’ll need to give at least 10 business days’ notice before the conversion takes place. This sets clear expectations for timing and volume, and helps reduce uncertainty around how these conversions play out.
Franklin BSP Realty Trust’s Board of Directors approved these changes, and shareholders signed off through unanimous written consent. The revised language now becomes part of the company’s official charter.
For shareholders, the new terms provide more predictability, but also limit flexibility. Monthly conversion caps and notice periods mean decisions need to be more deliberate. And with the conversion clock now ticking toward January 2028, holders of Series H Preferred Shares will want to reevaluate their strategy to stay aligned with the updated terms.
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