Neiman Marcus, Inc. (the “Company”), one of the nation’s leading luxury retailers, announced today that its Board of Directors declared a cash dividend of approximately $442.6 million, or $435 per share of its outstanding common stock (the “Dividend”).
The Dividend will be paid on March 30, 2012 to stockholders of record at the close of business on March 28, 2012. The Neiman Marcus Group, Inc. (“NMG”), a wholly-owned subsidiary of the Company, currently intends to use its cash on hand and borrowings on its Asset-Based Revolving Credit Facility to fund a cash dividend of $442.6 million to the Company that will be used to fund the Dividend. NMG initially expects to borrow $150 million, but the amount of outstanding borrowings could fluctuate based on its current and future working capital and other cash requirements.
In connection with the payment of the Dividend by the Company, holders of vested options will receive a cash payment in respect of their vested options based on 50% of the per share amount of the Dividend, which will result in an aggregate payment to such holders of approximately $10.2 million, and there will be an adjustment to the exercise price of outstanding options to reflect the Dividend.
Neiman Marcus, Inc. operations include the Specialty Retail Stores segment and the Direct Marketing segment. The Specialty Retail Stores segment consists primarily of Neiman Marcus, Last Call and Bergdorf Goodman stores. The Direct Marketing segment conducts both online and print catalog operations under the Neiman Marcus, Horchow, Last Call and Bergdorf Goodman brand names. Information about the Company can be accessed at www.neimanmarcusgroup.com.
