Home shopping network HSN has declared a special dividend of $10 per share and more than doubled its credit line to pay for it.
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.
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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.