Leidos Holdings, Inc. Declares Special Cash Dividend of $13.64 Per Share In Connection With IS&GS Transaction
Thu August 4, 2016 4:30 PM|PR Newswire | About: LDOS
RESTON, Va., Aug. 4, 2016 /PRNewswire/ -- Leidos Holdings, Inc. (LDOS) (NYSE: LDOS) announced today that its Board of Directors has declared a special cash dividend of $13.64 per outstanding share of Leidos common stock. The dividend, totaling an aggregate payment of approximately $1.0 billion based on the current number of shares outstanding, is conditioned on the consummation of the previously announced combination of Lockheed Martin's realigned Information Systems & Global Solutions business (IS&GS) with Leidos in a Reverse Morris Trust transaction. The special dividend is expected to be paid on or about August 22, 2016 to Leidos stockholders of record as of the close of business on August 15, 2016. It is currently expected that Leidos common stock will trade "ex-dividend" on the New York Stock Exchange on August 17, 2016, the trading day immediately following the anticipated closing date of the IS&GS transaction. Stockholders of record on the record date who sell their shares prior to the ex-dividend date will not receive the special cash dividend.
The special dividend will be funded with cash on hand and borrowings under a previously announced new term loan and revolving credit facility to be entered into by Leidos prior to the closing of the IS&GS transaction.
The U.S. federal income tax treatment of holding common stock to any particular stockholder will depend on the stockholder's particular tax circumstances. Leidos' stockholders are urged to consult their tax advisor regarding the U.S. federal, state, local and foreign income and other tax consequences to them, in light of their particular investment or tax circumstances, of the receipt of the special dividend.
About Leidos
Leidos is a science and technology solutions leader working to address some of the world's toughest challenges in national security, health and infrastructure. The Company's 18,000 employees support vital missions for government and commercial customers, develop innovative solutions to drive better outcomes and defend our digital and physical infrastructure from 'new world' threats. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $5.09 billion for the 12 months ended January 1, 2016. For more information, visit www.Leidos.com.
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