Emmis Plans Cash Dividend, Note Buyback
September 18, 2006 at 5:58 AM (PT)
EMMIS COMMUNICATIONS CORP.'s board has authorized a special dividend of $4.00 per share of its common stock to be paid before the end of NOVEMBER. The company's EMMIS OPERATING CO. subsidiary will also launch a buyback offer for all its ouitstanding 6-7/8% Senior Subordinated Notes due 2012, with terms to be disclosed later.
Chairman/CEO JEFF SMULYAN says that the board "decided that this special dividend -- the first-ever for EMMIS -- would reward all of its common shareholders while at the same time establish an appropriate capital structure for EMMIS to achieve its strategies. This action demonstrates the Board's confidence in Emmis' financial discipline, while allowing all shareholders to benefit from overachieving the expected sale price for our television stations. Coupled with last year's Dutch auction tender, we will have returned almost $550 million to shareholders in the last eighteen months."