Press release from PR Newswire
KeyCorp Declares 10% Increase in Quarterly Cash Dividend to Five and a Half Cents Per Common Share
Thursday, May 16, 2013
KeyCorp Declares 10% Increase in Quarterly Cash Dividend to Five and a Half Cents Per Common Share08:39 EDT Thursday, May 16, 2013
Shareholders Approve Board Nominees, Executive Compensation and KeyCorp's 2013 Equity Compensation Plan
CLEVELAND, May 16, 2013 /PRNewswire/ -- KeyCorp (NYSE: KEY) announced today that its Board of Directors declared the following dividends for the second quarter of 2013:
- A cash dividend of $0.055 per share on the corporation's outstanding common shares. The dividend is payable June 14, 2013 to holders of record of common shares as of the close of business on May 28, 2013.
- A dividend of $1.9375 per share on the corporation's outstanding 7.750% Non-Cumulative Perpetual Convertible Preferred Stock, Series A, to holders of record as of the close of business on May 31, 2013, for the period commencing on (and including) March 15, 2013 to (but excluding) June 15, 2013. The dividend will be paid on June 17, 2013.
"The action by the Board of Directors to raise Key's dividend by 10% is yet another example of how we are meeting our commitment to deliver shareholder value," said Chairman and Chief Executive Officer Beth E. Mooney. "Additionally, in March during the CCAR process the Federal Reserve had no objection to our share repurchase program of up to $426 million. With both the share repurchase program and increase in our dividend, Key's total estimated payout ratio is among the highest in the industry."
Key also announced the Company has received a no objection to its request for an additional capital distribution in the form of share repurchases with respect to the after tax net proceeds realized on the cash portion of the purchase price associated with the pending sale of Victory Capital Management and Victory Capital Advisors (Victory) expected to be realized in the third quarter of 2013 at the time of closing. As previously announced, the Company entered into a sales agreement in February 2013 to sell Victory. The sales price consists of $201 million of cash at closing and a seller note. The initial face amount of the note will be $45 million, with its final value determined at the end of 2013. The no objection relates to the after-tax net gain realized on the cash portion of the sale at closing. The company currently estimates that this portion of the after-tax net gain will be approximately $120 to $125 million. The closing remains subject to customary closing conditions and consents of the Victory Mutual Fund shareholders and certain investment advisory clients. The Company intends to request an additional capital distribution for the after-tax net gain realized on the final determination of the note after the end of 2013.
Additionally, during KeyCorp's May 16 annual meeting, shareholders elected all of the KeyCorp's 12 nominees to its Board of Directors; ratified the appointment of Ernst & Young as the company's independent auditors for 2013; approved, with more than 95% of the vote, an advisory proposal on compensation of KeyCorp's named executive officers; and approved KeyCorp's 2013 Equity Compensation Plan.
KeyCorp was organized more than 160 years ago and is headquartered in Cleveland, Ohio. One of the nation's largest bank-based financial services companies, Key had assets of approximately $89.2 billion at March 31, 2013.
Key provides deposit, lending, cash management and investment services to individuals and small and mid-sized businesses in 14 states under the name KeyBank National Association. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.
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