NEW YORK--(BUSINESS WIRE)--Macquarie Infrastructure Corporation (NYSE: MIC) announced that a performance fee of $135.6 million is payable to its external Manager, Macquarie Infrastructure Management (USA) Inc., as a result of outperformance by the Company of its benchmark index over the second quarter of 2015. The fee represents outperformance of MIC’s benchmark of approximately 10.8% during the quarter ended June 30, 2015.
Performance fees are payable when total shareholder returns are positive and exceed the total return for the benchmark index in both the quarter and cumulatively.
The Company will settle the fee in two payments with $67.8 million paid in cash in July of this year and the balance settled in shares of MIC to be issued in July of 2016. The number of shares issued next year will be based on the volume weighted average share price at which a performance fee for the second quarter in 2016, if any, would be reinvested.
The MIC board requested, and the Manager agreed, that the payment of a portion of the fee be in cash rather than entirely reinvested in shares as means of minimizing any dilutive impact of a share issuance to settle the full amount. The settlement of this particular performance fee in part in cash today and shares in 2016 represents neither a change in policy nor a modification of Macquarie’s views on the value of MIC shares.
MIC excludes base and performance fees payable to the Manager from its calculation of Free Cash Flow whether the fees are settled in shares or cash. The Company reiterated its previous guidance with respect to an expected increase in its cash dividend per share of 14% in 2015 compared with 2014.
Since its IPO in December 2004 through the end of the June 2015 quarter, MIC has delivered total shareholder returns averaging approximately 17.8% per year. Over the same period, the benchmark index has delivered total returns of approximately 8.2% per year.
MIC will publish its financial results for the second quarter of 2015 after the close of the markets on August 3, 2015. A conference call during which management will discuss the results will be conducted the morning of August 4, 2015.
About Macquarie Infrastructure Corporation
Macquarie Infrastructure Corporation owns, operates and invests in a diversified group of infrastructure businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid terminals business, International-Matex Tank Terminals, an airport services business, Atlantic Aviation, a gas processing and distribution business, Hawaii Gas, and several entities comprising a Contracted Power and Energy segment. MIC 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
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.