June 8, 2012 [OPIS] - Macquarie Infrastructure Company (MIC) said late on Wednesday that 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 Dec. 31, 2011.
Macquarie, a 50% owner of IMTT, had previously said that the arbitration involving itself and the co-shareholder of IMTT over differences of distributions payments would be completed in the first quarter of 2012. IMTT owns and operates 10 bulk liquid storage marine terminals in the U.S. and has partial interest in and operates two other facilities in Canada (IMTT Quebec, IMTT Arnold’s Cove).
The total storage capacity of all facilities exceeds 43 million bbl. The largest IMTT terminals are located in New York Harbor and on the Mississippi River near the Gulf of Mexico. IMTT generates revenue by leasing storage capacity to third parties pursuant to contracts that typically range from three to five years in duration.
MIC 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.
MIC’s manager intends to reinvest its fees until MIC has successfully refinanced the debt facilities of its Atlantic Aviation business. The Atlantic Aviation debt facilities mature in October of 2014. 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 MIC’s businesses, the economic conditions prevailing at the time of any authorization, the timing of the receipt of cash from IMTT, compliance by MIC’s co-investor with the dividend provisions of the IMTT Shareholders’ Agreement in the future, and authorization by the MIC board of directors.
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IMTT’s Storage Facilities in TankTerminals.com: IMTT Channahon – Illinois, IMTT Geismar – Louisiana, IMTT Richmond – California, New Orleans – Gretna Lousiana, IMTT New Orleans – Avondale Lousiana, IMTT Lemont – Illinois IMTT Norfolk – Virginia
