Silver Lake To Invest In Symantec - Quick Facts

(RTTNews) - Symantec Corp. (SYMC) and Silver Lake announced that Silver Lake will make a $500 million strategic investment in Symantec. Silver Lake is purchasing $500 million aggregate principal amount of 2.5% convertible senior unsecured notes due 2021 with an initial conversion price of $21.00 per share. Ken Hao, managing partner of Silver Lake, will be appointed to Symantec's Board.

In connection with the investment, the Symantec Board has increased the company's total capital return program to $5.5 billion. The Symantec Board expects to complete the full $5.5 billion capital return by the end of March 2017 in the form of: $500 million accelerated share repurchase completed in January 2016; a special dividend of $4.00 per share, equaling $2.7 billion; and $2.3 billion in future share repurchases.

Symantec will fund the $5.5 billion in capital return through a combination of the after-tax cash proceeds from the Veritas sale, the $500 million investment from Silver Lake, additional debt anticipated to be raised and available cash on hand.

Symantec also announced the company is targeting cost savings of approximately $400 million to be achieved by the end of fiscal 2018. The Board has determined to adjust its annual dividend starting first quarter fiscal year 2017 to $0.30 per share, or $0.075 per share per quarter, to reflect reduced projected domestic cash flow, following the sale of Veritas, and the one-time special dividend.