NEW YORK (TheStreet) -- Macquarie Infrastructure (MIC) hit a 52-week high of $68.41 on Tuesday after the company announced it would spend $1.25 billion to acquire the 50% of International-Matex Tank Terminals it does not own.
Macquarie will pay $990 million in cash and $115 million in newly-issued stock. The company will use proceeds of convertible senior notes to be issued, as well as cash on hand, to provide the cash portion of the transaction. Macquarie will also acquire a $250 million revolving credit facility to provide additional liquidity and flexibility.
The company also increased its quarterly dividend by 1.3% to 95 cents a share. The dividend is payable Aug. 14 to shareholders of record Aug. 11.
The stock was up 10.87% to $67.82 at 12:28 p.m. Nearly 1.5 million shares had changed hands, compared to the average volume of 196,200.
Separately, TheStreet Ratings team rates MACQUARIE INFRASTRUCT CO LLC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MACQUARIE INFRASTRUCT CO LLC (MIC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."