Macquarie Infrastructure To Pay $1.25 Billion For Remaining Stake In Tank Terminal Company
Macquarie Infrastructure (NYSE: MIC) agreed Monday to acquire the 50 percent of International-Matex Tank Terminals it doesn't currently own for $910 million in cash and $115 million in newly issued stock.
The cash portion of the deal will be paid using proceeds of convertible senior notes to be issued, as well as cash on hand. Macquarie will obtain a $250 million revolving credit facility at the MIC to provide additional liquidity and flexibility.
Macquarie also boosted its quarterly dividend by 1.3 percent to $0.95 per share, payable August 14 to holders of record August 11.
In light of the deal, which is to close later this month, Macquarie now expects 2014 free cash flow excluding transaction expenses of $4.55 per share, or 11.2 percent higher than in 2013. For 2015, it forecast free cash flow of $5.10 per share, resulting in a 12.1 percent annual growth rate.
Between 80 percent and 85 percent of free cash flow will be targeted as payout to investors as a quarterly cash dividend.
Macquaries's Chief Executive James Hooke will initially act as the CEO of the terminal business in addition to his role at Macquarie. International Matix's asset director, James May, was named its chief financial officer.
Macquarie acquired its current 50 percent stake in the tank terminal business in May 2006 and since then has seen International Matrix's annual earnings before interest taxes and depreciation and amortization grow to $279.6 million, from $67 million.
Macquarie Infrastructure closed Monday at $61.17, down 0.7 percent.
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