Macquarie Infrastructure to sell IMTT unit to Riverstone affiliate for ~$2.7B

On November 8, MIC entered into an agreement to sell its bulk liquid storage and handling business, IMTT, to an entity affiliated with Riverstone Holdings LLC for approximately $2.685B in cash and assumed debt. The transaction is expected to close in late 2020 or early 2021, subject to receipt of approvals and satisfaction of the conditions precedent set forth in the sales agreement. MIC intends to use all net proceeds, after payment of capital gains taxes and additional transaction related expenses and fees, to pay a special dividend of approximately $10.75 per share and to repay or offset holding company level debt of approximately $400M. Both the record date for the dividend and final amount remain subject to approval by the MIC board of directors, which is expected following the closing of the sale based on business and economic conditions at the time. Pro-forma for the completion of the sale and the payment of the special dividend, the company expects its leverage ratio to be approximately 4.3x net debt to EBITDA. On closing of the sale, MIC anticipates paying capital gains taxes of approximately $158M, additional transaction expenses of approximately $25M and a payment to the company's external Manager of approximately $28M pursuant to the Disposition Agreement entered into between the company and the Manager on October 30, 2019.