On June 12, 2015 Reynolds American Inc. (RAI) completed its acquisition of Lorillard, Inc. We have outlined the information for best practice entry into Schwab PortfolioCenter® below. Always defer to the Investor Information releases for any and all corporate action information or consult a tax advisor if there are questions regarding the cost basis. Investor details are outlined in the RAI press release here and FAQs here.
- Block all transactions sent by the custodians.
- Schwab: Block Credits, Debits and Journals
- Fidelity: Block Credits, Debits, Journals and ROP
- Pershing: Block Credits Debits, Journals and any ROP (if applicable)
- Go to the Transaction Writer
- Click on New and create the new Transaction List
- Fill in the following information into the next two screens (NOTE: Information has been provided by the RAI Investor Relations & FAQ releases
- Run the Wizard on All Portfolios
- Close the list once the transactions are generated
You will generate the following types of transactions through the Merger/Exchange wizard:
- Credit of Securities – RAI Shares
- Debit of Securities – LO Shares
- Income – Long Term Gain – RAI
- ROP – RAI (NOTE: Income & ROP will be the combined total for the Journals that come through the custodian download for the cash payout.)
- Sell – Fractional shares of RAI (NOTE: The fractional share sales may need to be checked when the Journals & ROP comes through from the custodians specifically for the Cash in Lieu function. Although information is pulled from the Reynolds Shareholders information, there may be slight discrepancies in the cash amount against what the custodian sends down; update as necessary.)
Post the List using the POST LIST button, the system will post them in order as necessary because the ROPs are linked to the other transactions generated and attempting to post anything individually will break the link.