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HSN enters new $1.25 credit facility, will repurchase 4 million shares


St. Petersburg, Fla. - HSN Inc. (HSNi) has entered into a new $1.25 billion five-year credit facility, replacing its existing $600 million credit facility. In addition, in continuation of the company's capital return plan, the board of directors declared a special cash dividend of $10 per share, representing approximately $525 million.

The dividend is payable Feb. 19, 2015 to shareholders of record as of Feb. 9, 2015. The board also authorized a share repurchase program covering 4 million shares, principally to offset dilution related to the company's equity compensation programs.

The special cash dividend will be funded from the company's new $1.25 billion credit facility, which includes a $750 million revolving credit facility and a $500 million term loan, expiring in January 2020.

Under the terms of the share repurchase program, HSNi will repurchase its common stock from time to time through privately negotiated or open market transactions. The timing of any repurchases and actual number of shares repurchased will depend on a variety of factors, including the stock price, corporate and regulatory requirements, restrictions under the company's debt obligations and other market and economic conditions. The repurchase program may be suspended or discontinued by HSNi at any time.

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