ST. PETERSBURG, Fla. – Home shopping network HSN has declared a special dividend of $10 per share and more than doubled its credit line to pay for it.
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The company said it is paying the dividend because of its confidence in its ability to grow and generate cash. The special dividend of approximately $525 million will be paid on Feb. 19 to shareholders of record on Feb. 9, the home shopping network operator said.
The board also approved the repurchase of 4 million shares of the St. Petersburg, Florida-based company's common stock.
In addition, HSN Inc. announced on Wednesday that it entered a new $1.25 billion five-year credit facility. This replaces an existing $600 million credit facility. The new credit facility will fund the special dividend.
HSN has returned about $590 million to shareholders through stock buybacks and cash dividends from September 2011 through December 2014.