Red Lobster Sale To Produce Proceeds Of $1.6B Of Which $1B Will Retire Outstanding Debt

Darden expects to receive net cash proceeds from the sale of Red Lobster, after tax and transaction costs, of approximately $1.6 billion, of which approximately $1.0 billion will be used to retire outstanding debt. The remaining net proceeds of approximately $500 million to $600 million will be deployed in fiscal 2015 for a new share repurchase program of up to $700 million. In addition to strengthening the Company's credit metrics, with the lower debt levels and reduced outstanding share count, Darden expects to maintain its current quarterly dividend of 55 cents per share, or $2.20 annually. The transaction is expected to close in the Company's first quarter of fiscal 2015.