LPL Investment Holdings, parent company of LPL Financial, has successfully completed a refinancing of its existing senior secured credit facilities and has declared a one-time special dividend of $2 per share payable to all record holders of common stock.
In addition to the special dividend, LPL Investment Holdings also plans to pay regular quarterly dividends, initially up to 12 cents (48 cents annually) beginning in the second half of 2012. The declaration and amount of any dividend will remain subject to approval by the Board of Directors.
Under the newly completed refinancing, LPL Investment Holdings established a new Term Loan A of $735 million maturing on March 29, 2017, and a new Term Loan B of $615 million maturing on March 29, 2019. LPL expects to lower its annual interest expense by $10 million and will also maintain a $250 million revolving loan. The refinancing replaces the $1.33 billion loan and $163.5 million revolving loan previously in place.
"Today's announcement represents an important milestone for our company -- and it speaks to a number of factors, including the strength of our balance sheet, cash flows, and our track record of financial performance and revenue growth across varied economic conditions," says Mark Casady, LPL Financial chairman and CEO.
LPL Financial, with headquarters in Boston, Charlotte and San Diego, offers proprietary technology, comprehensive clearing and compliance services, practice management programs and training, and independent research to more than 12,800 financial advisors and approximately 670 financial institutions.
-Please send On the Move items to Kathy Lynch.