Thomson Reuters Details Uses Of Proceeds From F&R Deal; Raises Dividend

(RTTNews) - Thomson Reuters (TRI, TRI.TO) finalized its planned uses of proceeds from the recently completed sale of a 55% interest in its Financial & Risk (F&R) business. Approximately $4 billion of debt has been repaid since closing the F&R transaction. The company plans to maintain approximately $2 billion of cash on its balance sheet to fund focused acquisitions and utilize approximately $1 billion to cover F&R transaction-related expenses, including cash taxes, pension contributions, bond redemption costs, one-time costs and other fees and outflows related to the transaction.

Approximately $6.5 billion is being returned in connection with the settlement of its substantial issuer bid/tender offer. The company has taken up and purchased for cancellation approximately 138.0 million common shares at a purchase price of $47.00 per share, for a total cost of approximately $6.5 billion.

Approximately $2.5 billion will be returned to its shareholders through a return of capital transaction consisting of a cash distribution of $4.45 per common share and a share consolidation, or reverse stock split. A special meeting of shareholders will be held on November 19, 2018 where shareholders will be asked to approve the distribution of $4.45 in cash per common share, to holders of common shares and a consolidation of outstanding common shares on a basis that is proportional to the cash distribution.

Approximately $1 billion will be returned to shareholders through share repurchases under its normal course issuer bid.

The Thomson Reuters Board approved a $0.02 per share annualized increase in the dividend to $1.40 per common share. A quarterly dividend of $0.35 per share is payable on December 17, 2018 to common shareholders of record as of November 15, 2018.