Got one share of HSN Inc. stock? Plan to put $10 in your pocket in mid-February.
The board of directors of HSN (NASDAQ: HSNI) declared a special cash dividend of $10 a share to shareholders of record as of Feb. 9, payable Feb. 19.
"The special cash dividend of approximately $525 million represents a significant return of capital to our shareholders, almost equivalent to our total capital return to shareholders over the past three years," Judy Schmeling, chief operating officer and chief financial officer, said in a statement.
The board also authorized a stock buyback covering 4 million shares.
The board actions are "based on our continued confidence in the company's long-term growth potential, financial outlook and cash flow generation," Mindy Grossman, CEO, said in the statement.
The dividend will be funded from a new $1.25 billion five-year credit facility. Bank of America, JPMorgan Chase Bank, Wells Fargo Bank, Fifth Third Bank, Regions Bank, MUFG Union Bank, BB&T Co., BBVA Compass, and PNC Bank are among the financial institutions involved in the new credit deal, a filing with the U.S. Securities and Exchange Commission said.
It replaces an existing $600 million credit facility.
HSN (NASDAQ: HSNI), a St. Petersburg-based multi-channel retailer, is among several companies that have declared special cash dividends recently. Others include Pittsburgh-based real estate investment firm HFF Inc. (NYSE: HF); HollyFrontier Corp. (NYSE: HFC), a Dallas-based independent petroleum refiner; and Northwest Bancshares, the Warren, Pa.-based parent company of Northwest Savings Bank.