Macquarie Infrastructure Company Discloses Performance Fee Payable for Second Quarter of 2014, Additional Investment
July 3, 2014
$5.0 million payable to management company to be invested in
Additional contracted power assets acquired
NEW YORK--(BUSINESS WIRE)--
Macquarie Infrastructure Company (NYSE:MIC) announced that a performance
fee of $5.0 million is payable to its management company, Macquarie
Infrastructure Management (USA) Inc. (“MIMUSA”), for the second quarter
of 2014. Performance fees are payable when the total return for
shareholders of MIC exceeds that of a benchmark index and cumulative
total returns are in excess of any prior underperformance.
Performance fees are calculated based on a comparison of the 15-day
volume weighted average price of MIC’s shares at the end of each quarter
with the same calculation for the prior quarter. The average closing
value of the MIC accumulation index for the last 15 trading days of the
second quarter was approximately 11.5% above the average closing of the
accumulation index for the 15 trading days ended March 31, 2014.
MIMUSA has elected to reinvest the performance fee for the second
quarter in additional LLC interests. In accordance with the Management
Services Agreement in place between MIC and MIMUSA, the price at which
additional shares are to be issued will be calculated using the volume
weighted average price of MIC’s shares over the last month of the
quarter for which the fee is calculated. MIMUSA will reinvest the second
quarter performance fee in an additional 81,680 shares of MIC. All
performance fees previously generated have also been reinvested in
MIC expects to publish its financial results for the second quarter of
2014 after the close of the markets on July 30, 2014. A conference call
during which management will discuss the results will be conducted the
morning of July 31, 2014.
MIC also reported that it closed on the acquisition of 19.8 megawatts of
wind power generating assets located in New Mexico for $10.6 million
including transaction costs. The investment is the Company’s first
investment in wind power generation.
“We have been discussing the potential to diversify our Contracted Power
and Energy segment into projects other than solar photovoltaic for some
time,” said James Hooke, chief executive officer of MIC. “This
particular opportunity meets our investment criteria in that it is an
existing facility with a proven wind resource, there is a 20 year power
purchase agreement in place with an investment grade counterparty, and
we were able to structure the investment in a manner that provides us
with good visibility into the cash generating of the facility, similar
to our existing contracted power projects.”
MIC acquired the wind farm from BayWa r.e. Wind, LLC.
About Macquarie Infrastructure Company
Macquarie Infrastructure Company owns, operates and invests in a
diversified group of infrastructure businesses providing basic services
to customers in the United States. Its businesses consist of a gas
processing and distribution business, Hawaii Gas, several entities
comprising a Contracted Power and Energy segment, and an interest in a
bulk liquid storage terminal business, International-Matex Tank
Terminals. MIC also owns and operates an airport services business,
Atlantic Aviation. The Company is managed by a wholly-owned subsidiary
of the Macquarie Group. For additional information, please visit the
Macquarie Infrastructure Company website at www.macquarie.com/mic.
MIC is not an authorized deposit-taking institution for the purposes of
the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC
do not represent deposits or other liabilities of Macquarie Bank Limited
ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide
assurance in respect of the obligations of MIC.
Macquarie Infrastructure Company Investor enquiries Jay A.
Davis, 212-231-1825 Investor Relations or Media enquiries Paula
Chirhart, 212-231-1239 Corporate Communications