Entravision Communications says its board has approved the initiation of a quarterly cash dividend to shareholders and has declared an initial quarterly cash dividend of $0.025 per share of the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.2 million. The initial quarterly dividend will be payable on 12/30 to shareholders of record as of the close of business on 12/16, and the common stock will trade ex-dividend on 12/12. The company currently anticipates that future cash dividends will be paid on a quarterly basis. Any decision to pay future cash dividends will be subject to further approval by the board.
The board also declared a special one-time cash dividend of $0.10 per share to shareholders of the company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $8.8 million. The special one-time dividend will also be payable on 12/30 to shareholders of record as of the close of business on 12/16, and the common stock will trade ex-dividend on 12/12.
In addition, the Company announced its intention to prepay $10 million of term loans under the Company’s senior secured term loan credit facility entered into on 5/31. Entravision anticipates funding this prepayment by using cash on hand. Following the prepayment, approximately $364 million will remain outstanding under the company’s term loan credit facility.
“Our strong financial performance and balance sheet offers us the opportunity to return value directly to our shareholders through the first quarterly dividend in Entravision’s history,” said Walter Ulloa, Entravision CEO. “We are pleased to deliver additional returns through the one-time special dividend as well as further reduce our debt and strengthen our balance sheet. Our liquidity position remains solid and we are focused on continuing to execute our growth strategy and generate strong operating results.”