Source: TSYS
TSYS (NYSE:TSS), one of the world's largest providers of outsourced payment services, today announced that its Board of Directors has declared a one-time special cash dividend of $600 million to be paid on a pro rata basis to its shareholders, including Synovus, in connection with the previously announced spin-off to Synovus' shareholders of the shares of TSYS stock currently owned by Synovus.
The dividend will be paid on Dec. 31, 2007, to TSYS shareholders of record as of the close of business on Dec. 17, 2007. Pursuant to the agreement and plan of distribution, Synovus will receive approximately $485 million in proceeds from this one-time special cash dividend.
Based on the number of TSYS shares outstanding as of Oct. 31, 2007, it is expected that TSYS shareholders as of the record date will receive $3.03 per share. The final per share dividend will be determined based on the number of TSYS shares outstanding on the record date.
TSYS also will pay a regular quarterly cash dividend to shareholders of record as of the close of business on Dec. 17, 2007, including Synovus, in the amount of $.07 per share. This dividend will be paid on Jan. 2, 2008.
In addition, Synovus today announced that its Board of Directors has set Dec. 18, 2007, as the record date for the previously announced spin-off to Synovus' shareholders of the shares of TSYS stock currently owned by Synovus. Synovus currently owns approximately 80.7 percent of TSYS. The distribution of the approximately 159.6 million TSYS shares owned by Synovus will be made on a pro rata basis on Dec. 31, 2007, to shareholders of record as of the close of business on the Dec. 18 record date.
TSYS has been advised that, in connection with the spin-off, a "when-issued" public market for TSYS common stock on the New York Stock Exchange (NYSE) will begin shortly after the final amount of the per-share special cash dividend is determined, which is expected to be on or around Dec. 19, 2007, and continue through the distribution date under the symbol "TSS wi." The "when-issued" public market will be a market for shares of TSYS common stock that will be distributed to Synovus shareholders on the distribution date. In addition, TSYS expects to be quoted "ex-dividend" on the NYSE beginning on or around Dec. 19, 2007. Any holder of TSYS common stock who sells shares of TSYS (which currently trades on the NYSE under the symbol "TSS") in the "regular way" market before the date "ex-dividend" trading begins will be selling the entitlement to receive the special cash dividend and regular quarterly cash dividend. Holders of TSYS common stock are encouraged to consult with their financial advisors regarding the specific implications of selling TSYS common stock before the date "ex-dividend" trading begins.