Presidio, Inc. (PSDO) Initiates $0.04 Quarterly Dividend; 1% Yield; Board Approves Negotiated 10.75M Share Repurchase Authorization
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Presidio, Inc. (NASDAQ: PSDO) declared a quarterly dividend of $0.04 per share, or $0.16 annualized.
The dividend will be payable on October 5, 2018, to stockholders of record on September 26, 2018, with an ex-dividend date of September 25, 2018.
The annual yield on the dividend is 1 percent.
The declaration and payment of future dividends will be subject to the discretion and approval of the Company's board of directors and will be dependent upon, among other things, the Company's financial position, results of operations and cash flow.
Negotiated Share Buyback
Presidio’s board of directors has also approved an opportunistic repurchase of 10,750,000 of the Company’s shares from funds managed by affiliates of Apollo Global Management, LLC (NYSE: APO) for approximately $160 million, including fees and transaction costs. Subject to the satisfaction of the conditions set forth in the stock repurchase agreement dated September 6, 2018 between the Company and an affiliate of investment funds affiliated with Apollo, the repurchase will be effectuated at a price of $14.75 per share, representing a 4.3% discount to the 15-day volume weighted average trading price of the Company’s shares of $15.41 per share through September 5, 2018 and representing a 5.2% discount to the closing price of the Company’s shares of $15.56 per share on September 5, 2018. The repurchase is expected to deliver 7% EPS accretion to shareholders on an annualized basis, and reduces the amount of Presidio stock held by funds affiliated with Apollo by 18.6%. The Company intends to finance the share repurchase through the incurrence of new incremental term loans under its existing credit agreement. At June 30, 2018, on a pro forma basis, after giving effect to such new term loans used to finance the share repurchase, total net debt was $809.6 million, representing 3.6X total net leverage. The share repurchase is expected to close on September 13, 2018, subject to the satisfaction or waiver of certain conditions.
Bob Cagnazzi, Chairman and CEO of Presidio, commented, “The decision by the board to initiate a quarterly cash dividend program and authorize a share repurchase represents a significant milestone for Presidio. It underscores our strong and growing free cash flow generation, and reflects our confidence in the Company’s long-term financial outlook. It also reaffirms our commitment to driving shareholder value and is complemented by continued reinvestment in our business and an opportunistic acquisition strategy.”
For a dividend history and other dividend-related data on Presidio, Inc. (PSDO) click here.
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Create E-mail Alert Related CategoriesDividends, Management Comments, Stock Buybacks
Related EntitiesDividend, Stock Buyback, Definitive Agreement
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