IRM Form 8-K
On 8/4/14 Iron Mountain Inc., (NYSE:IRM) released a Form 8-k filing, "Other events, financial statements, and exhibits," regarding the conversion of IRM into a REIT with a retroactive effective date of January 1, 2014.
IRM Special Dividend
This filing confirms the need for a special dividend by IRM of its retained earnings in order to complete the REIT conversion of the company. It outlines the time frame that IRM expects to use to accomplish the payment of the special dividend. The special dividend will total between 600 and 700 million dollars. Presently, IRM has approximately 193 million shares outstanding, so the special dividend will be between $3.10 and $3.62 dollars per share. The special dividend will be paid to IRM shareholders some time in the second half of 2014. IRM expects this special dividend will be paid in the ratio of 80% in additional IRM shares and 20% in cash. IRM, however, reserves the right to pay the special dividend in all cash or in a different ratio than 80/20, if the company deems it appropriate, based on its cash flows, strategic plans, leverage and/or other factors. The cash portion of the special dividend is meant to help defray any income taxes due on this dividend since the stock component of the dividend, if any, will not be (income) tax free. The complete Form 8-K details are to be found here.
The need for this special dividend, as covered in this Form 8-K filing, was anticipated in my original article on the REIT conversion by IRM which can be found here.
Disclaimer: The information I have provided is not meant to be investment advice, nor is it guaranteed in any way to assure success in IRM. Potential investors need to make their own choices based on further due diligence & their particular investment needs.
Disclosure: The author is long IRM. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.