|
|
|
|
||
MIC eliminates dividendSuspends quarterly cash dividend, withdraws guidance Strategic alternatives process ongoing Macquarie Infrastructure Corporation (NYSE: MIC) ("MIC" or the "Company") today announced that, in response to the impact of COVID-19, the Company is withdrawing its guidance and suspending its quarterly cash dividend. "Since our March 18, 2020 trading update, the global impact of COVID-19, including limitations on travel, has reduced demand for the products and services provided by our Atlantic Aviation and MIC Hawaii businesses, while utilization at our IMTT business has continued to improve," said Christopher Frost, chief executive officer of MIC. "Given the uncertainty stemming from COVID-19, we are withdrawing the guidance provided to the market on February 25, 2020 and suspending the quarterly cash dividend. The measures we are announcing today will increase our balance sheet strength and liquidity and position us well to withstand the current slowdown in activity." MIC remains focused on ensuring the health and safety of the employees and customers of its operating businesses and is implementing a range of cost control initiatives in response to the slowdown in activity. "Our people are critical to delivering the essential services provided by our businesses and, to the extent possible, our operating businesses will retain current employees and maintain healthcare plans," Frost added. To increase liquidity, on March 17, 2020 MIC drew $599 million on its holding company Revolving Credit Facility and $275 million on its Atlantic Aviation Revolving Credit Facility. The drawdowns added to the Company’s approximately $300 million of cash on hand. MIC intends to repay and cancel the Atlantic Aviation Revolving Credit Facility. Cancelling the Revolving Credit Facility will mean that the remaining Atlantic Aviation Term Loan, which matures in December 2025, will not be subject to an ongoing leverage-based maintenance covenant. "MIC and its subsidiaries are in compliance with all debt covenants," Frost noted. "There are no cross-collateralizations of liabilities among MIC’s operating businesses or any holding company guarantee of the liabilities of any of MIC’s operating business." The MIC board of directors’ suspension of the Company’s cash dividend will result in MIC retaining approximately $260 million should the suspension remain in place through 2020. As a result of the suspension of the dividend, MIC has no immediate need for additional capital and expects to fund its financial obligations in 2020 from the $300 million on hand prior to drawing down on its revolving credit facilities and cash generated by operating activities. |
return to message board, top of board |
Msg # | Subject | Author | Recs | Date Posted |
25785 | Re: MIC eliminates dividend | Jerseyvinny | 0 | 4/3/2020 10:05:17 AM |