MSCI Plans To Return $1 Bln To Shareholders By 2016 - Quick Facts

(RTTNews) - MSCI Inc. (MSCI), a provider of investment decision support tools worldwide, announced Thursday that its board has approved a plan to initiate a quarterly cash dividend and significantly increased the company's share repurchase authorization. It expects that the enhanced capital return plan will return about $1 billion to the company's shareholders by the end of 2016.

The company stated that it will pay a regular quarterly cash dividend, the first in the company's history, of $0.18 per share of common stock on October 31, 2014 to shareholders of record as of the close of trading on October 15, 2014. MSCI expects the initial annual dividend rate to be $0.72 per share.

In addition, the Board has increased its existing share repurchase authorization to $850 million from $300 million, including a new $300 million accelerated share repurchase or "ASR" agreement with Goldman Sachs, to be entered into on September 18, 2014.

MSCI expects to reduce its share count by approximately 4.5 million shares upon commencement of the $300 million ASR. The remaining $550 million authorization is expected to be utilized by the end of 2016 to repurchase MSCI common stock in the open market or in privately negotiated transactions from time to time based on market and other conditions. This authorization may be modified, suspended, terminated or extended by the Board at any time without prior notice.

"....... We will continue to invest in 2015, but we expect the rate of increase in our Adjusted EBITDA expenses to be lower than in 2014. As a consequence, we expect to generate higher profit growth next year as the rate of increase in our spending begins to subside. We are confident that our investments will enable us to generate double digit revenue growth - exclusive of any acquisitions - by 2016," said Henry Fernandez, Chairman and Chief Executive Officer.