Entravision Communications does not pay a regular dividend on its common stock, but the board of the Spanish radio and TV specialist has now declared a one-time special cash dividend of six cents per share. The company has also been buying back some of its public bonds.
Entravision said it has repurchased in open market transactions $16.2 million in aggregate principal amount of its 8.75% senior secured first lien notes due 2017.
“We continually review the strategic use of our capital and today’s announcement highlights our commitment to deleverage our balance sheet and efforts to return value to our shareholders,” said CEO Walter Ulloa. “We believe we continue to have a solid liquidity position and remain focused on utilizing our unique station portfolio and expanding digital assets to continue to improve our operating performance.”
As for the dividend, it will be payable on December 30, 2011 to shareholders of record as of the close of business on December 16, 2011, and the common stock will trade ex-dividend on December 14, 2011. The total amount of cash to be disbursed for the special dividend is expected to be approximately $5.1 million, the company said.
RBR-TVBR observation: Entravision’s stock jumped on the news. Taken together, the announcements show the strength of the company’s free cash flow and management’s determination to use it wisely to return value to shareholders.