Syntel, Inc. (NASDAQ: SYNT) said its board of directors has declared a special cash dividend of two dollars and twenty-five cents ($2.25) per share, on Syntel’s common stock, payable on December 28, 2012 to shareholders of record at the close of business on December 18, 2012.
The aggregate amount of payment to be made in connection with this special cash dividend will be approximately $94 million.
In addition, Syntel announced that its board of directors has declared a regular quarterly dividend of six cents ($0.06) per share, on Syntel’s common stock, also payable on December 28, 2012 to shareholders of record at the close of business on December 18, 2012. The company also announced that the board of directors has discontinued all future regular quarterly dividends.
Syntel also announced that it has entered into an agreement to increase its line of credit with JPMorgan Chase Bank, N.A. from $20 million to $50 million and to draw upon the line of credit for $50 million to be used as partial funding for the special cash dividend. In connection with the increase in its line of credit, the company has provided a security interest in the US assets of Syntel, Inc. and certain of its US subsidiaries.
Syntel is a leading global provider of integrated information technology and Knowledge Process Outsourcing solutions spanning the entire lifecycle of business and information systems and processes. The company’s website is at www.syntelinc.com.