ILLINOIS CENTRAL CORP. DECLARES 3-FOR-2 STOCK SPLIT AND FIRST CASH DIVIDEND
ILLINOIS CENTRAL CORP. DECLARES
3-FOR-2 STOCK SPLIT AND FIRST CASH DIVIDEND
CHICAGO, Feb. 4 /PRNewswire/ -- The board of directors of Illinois Central Corp. (NYSE: IC) declared a 3-for-2 stock split on its common stock and authorized the payment of its first cash dividend.
The 3-for-2 stock split will be in the form of a stock dividend of the company's common stock to holders of record as of the close of business Feb. 18, 1992. New certificates will be issued by Feb. 28, 1992. Fractional shares will be settled in cash based on the average of the high and low prices of the common stock on the New York Stock Exchange on Feb. 18, 1992. The stock split will increase the shares outstanding from the Jan. 31, 1992, level of 28.2 million shares to approximately 42.3 million shares.
The board also approved the company's first quarterly dividend of 10 cents per share on the company's outstanding common stock. The dividend is on a post-split basis and will be payable on April 6, 1992, to stockholders of record at the close of business on March 16, 1992.
The company said that the board intends to continue a policy of quarterly dividends. It also noted that certain covenants restricting dividends contained in debt instruments of its operating subsidiary, Illinois Central Railroad, lapse in the fourth quarter of 1992.
Edward L. Moyers, chairman and chief executive officer, said, "These actions by the board reflect the record of operating and financial success achieved in the last two and one-half years. The board now believes that the Illinois Central is operating with predictable results and has significant growth potential and that the stockholders should benefit in the success of their company."
The board also set the annual stockholders meeting to be held in Chicago, on April 28, 1992, for stockholders of record as of March 16, 1992.
/CONTACT: Dale W. Phillips, vice president and chief financial officer of Illinois Central, 312-819-7930/
(IC) CO: Illinois Central Corp. ST: Illinois IN: TRN SU: DIV SM -- NY079 -- 6804 02/04/92 15:10 EST