From Earlier: Cabot Microelectronics Corporation Declares Special Cash Dividend of $15 Per Share
Cabot Microelectronics Corporation (Nasdaq: CCMP) yesterday announced that its Board of Directors has declared a special cash dividend of $15 per share, or approximately $345 million in total, payable to shareholders of record on February 23, 2012, that will be paid on March 1, 2012. Approximately half of the special cash dividend, along with related fees, will be funded from the company's available cash balance, and the remainder will be funded from a new five-year secured credit facility, which the company executed today.
Under the terms of the new secured credit facility, the company has arranged a $175 million term loan facility that will be fully drawn to pay the special cash dividend, and a $100 million revolving credit facility, which the company expects to be initially undrawn.
The term loan will bear interest at LIBOR plus 150 to 200 basis points and the revolving credit facility provides for a non-use fee of 25 to 35 basis points, both depending upon the company's leverage ratio. The company expects to incur approximately $3 million of financing-related expense through the remainder of its fiscal year 2012, including interest and amortized financing fees.
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