Macquarie Infrastructure Company Receives $110 Million Payment from Bulk Liquid Storage Subsidiary
- $110.6 Million Paid to Each of MIC and Co-Investor
- Management Fees to Be Reinvested In LLC Interests
- Payment and Reinvestment Expected to Result in Increased Dividend
NEW YORK--(BUSINESS WIRE)-- Macquarie Infrastructure Company (MIC) announced it has received a $110.6 million payment from its bulk liquid storage terminal business. On March 30, 2012, an arbitration panel awarded MIC and its co-investor in International-Matex Tank Terminals a total of $221.2 million in dividends for the five quarters ending December 31, 2011.
The Company also announced that its Manager, Macquarie Infrastructure Management (USA), currently intends to reinvest base management fees and any performance fees to which it becomes entitled in additional LLC interests. MICs Manager intends to reinvest its fees until the Company has successfully refinanced the debt facilities of its Atlantic Aviation business. The Atlantic Aviation debt facilities mature in October of 2014.
James Hooke, MICs Chief Executive Officer said, I am very pleased that our Manager intends to reinvest its fees. This decision along with the continued strong current performance of our businesses - is expected to further increase MICs dividend capacity beyond what was previously indicated.
MIC previously indicated that it expects to use the proceeds of the arbitration award to increase its quarterly shareholder dividend. The precise timing and amount of any future dividend will depend on the continued stable performance of the Companys businesses, the economic conditions prevailing at the time of any authorization, the timing of the receipt of cash from IMTT, compliance by the Companys co-investor with the dividend provisions of the IMTT Shareholders Agreement in the future, and authorization by the MIC board of directors.
About Macquarie Infrastructure Company
Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic, everyday services, to customers in the United States. Its businesses consist of three energy-related businesses including a gas production and distribution business (The Gas Company in Hawaii), a controlling interest in a district energy business (District Energy), and a 50% interest in a bulk liquid storage terminal business (International-Matex Tank Terminals). MIC also owns and operates an aviation-related airport services business (Atlantic Aviation). The Company is managed by a wholly-owned subsidiary of the Macquarie Group. For additional information, please visit the Macquarie Infrastructure Company website at www.macquarie.com/mic. MIC-G
This filing contains forward-looking statements. MIC may, in some cases, use words such as "project, "believe, "anticipate, "plan, "expect, "estimate, "intend, "should, "would, "could, "potentially, or "may or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this release are subject to a number of risks and uncertainties, some of which are beyond MICs control including, among other things: changes in general economic or business conditions; its ability to service, comply with the terms of and refinance debt, successfully integrate and manage acquired businesses, retain or replace qualified employees, manage growth, make and finance future acquisitions, and implement its strategy; its shared decision-making with co-investors over investments including the distribution of dividends; its regulatory environment establishing rate structures and monitoring quality of service, demographic trends, the political environment, the economy, tourism, construction and transportation costs, air travel, environmental costs and risks, fuel and gas costs; its ability to recover increases in costs from customers, reliance on sole or limited source suppliers, risks or conflicts of interests involving its relationship with the Macquarie Group and changes in U.S. federal tax law.
MICs actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which MIC is not currently aware could also cause its actual results to differ. In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements. The forward-looking events discussed in this release may not occur. These forward-looking statements are made as of the date of this release. MIC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
MIC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MIC.
Macquarie Infrastructure Company
Jay A. Davis, (212) 231-1825
Paula Chirhart, (212) 231-1310
Source: Macquarie Infrastructure CompanyCopyright Business Wire 2012