BOSTON--(BUSINESS WIRE)--
Iron Mountain Incorporated (NYSE:IRM) today announced that it will issue
approximately 15.8 million new shares of its common stock in connection
with the payment of the company’s previously announced special
distribution of $700 million, or approximately $3.61 per share (the
“Special Distribution”).
The Special Distribution represents the remaining amount of the
company’s undistributed earnings and profits (“E&P”) attributable to all
taxable periods ending on or prior to December 31, 2013, which, in
accordance with tax rules applicable to real estate investment trust
(“REIT”) conversions, the company is required to pay to its stockholders
on or before December 31, 2014 in connection with its conversion to a
REIT. The Special Distribution also will include some other items of
taxable income that the company expects to recognize in 2014, such as
depreciation recapture in respect of accounting method changes commenced
in its pre-REIT period as well as foreign earnings and profits
repatriated as dividend income. An initial $700 million of E&P was paid
to stockholders in November 2012, bringing the total amount of the
company’s special distributions to $1.4 billion, which is at the high
end of the company’s estimated range of $1.3 billion to $1.4 billion.
The Special Distribution is payable on November 4, 2014 to stockholders
of record as of the close of business on September 30, 2014.
Stockholders who elected to receive payment of the Special Distribution
in cash will receive approximately $1.04 per share of their payment, or
29%, in cash and approximately $2.57 per share, or 71%, in shares of the
company’s common stock. All other stockholders will receive 100% of
their payment in shares of the company’s common stock. Stockholders may
also receive cash in lieu of fractional shares. The number of shares to
be issued was determined based upon the average closing price on the
three trading days following October 24, 2014, or $35.55 per share.
About Iron Mountain
Iron Mountain Incorporated (NYSE:IRM) is a leading provider of storage
and information management services. The company’s real estate network
of over 67 million square feet across more than 1,000 facilities in 36
countries allows it to serve customers around the world. And its
solutions for records
management, data
management, document
management, data center management and secure
shredding help organizations to lower storage costs, comply with
regulations, recover from disaster, and better use their information.
Founded in 1951, Iron Mountain stores and protects billions of
information assets, including business documents, backup tapes,
electronic files and medical data. Visit www.ironmountain.com
for more information.
Source: Iron Mountain