OUTFRONT Media Announces Details of Special Dividend
Gail Chiasson, North American Editor
OUTFRONT Media Inc., New York, announced today the distribution results for its previously announced special dividend of approximately $547.7 million, or $4.56 per share of common stock outstanding on the record date.
The special dividend represents the Company’s accumulated earnings and profits as of July 17, 2014, the date the Company began operating in a manner that will allow it to qualify as a real estate investment trust (‘REIT’) for U.S. federal income tax purposes.
The special dividend is payable on December 31, 2014, to stockholders of record on November 20, 2014. Stockholders had the right to elect to receive the special dividend in the form of either cash or shares of our common stock, however the aggregate amount of cash to be distributed will be $109.5 million, or 20% of the special dividend, with the balance of the special dividend payable in the form of common stock.
The number of shares to be issued was determined based on the volume weighted average price of the Company’s common stock for the three trading days commencing on December 16, 2014, or $26.4974 per share.
Of approximately 120 million shares outstanding, approximately 68% elected all cash and approximately 32% either elected all stock or did not make an election. Those electing cash will receive $1.34 in cash plus 0.1216 shares of our common stock, per share of common stock held on the record date, which together represents $4.56 per share of common stock. Those electing stock or not making an election will receive 0.1722 shares of our common stock, per share of common stock held on the record date, which represents $4.56 per share of common stock. Stockholders will also receive cash in lieu of fractional shares.
The Company will issue approximately 16.5 million new shares of its common stock on December 31, 2014, in connection with the special dividend.
Wells Fargo Bank N.A. is serving as the Company’s election and disbursing agent.
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