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  • Sirius XM Radio, Inc. (SIRI) Board Of Directors Approves $2 Billion Stock Repurchase Program And Special Cash Dividend 0 comments
    Dec 7, 2012 3:12 PM | about stocks: SIRI

    Sirius XM Radio announced that its Board of Directors approved a $2 billion common stock repurchase program and a special cash dividend. The combined announcement reflects the Board's desire to return value to stockholders and its confidence in the long-term growth prospects of the company's business. The timing and amount of any shares repurchased will be determined based on the company's evaluation of market conditions and other factors, and the program may be discontinued or suspended.

    Shares of common stock may be purchased on the open market and in privately negotiated transactions. Liberty Media Corporation, the beneficial owner of approximately 49.8% of the company's stock, stated it will participate in the share repurchases on a pro rata basis so that its ownership interest will not be affected. Sirius XM Radio will fund the repurchases through cash on hand, future cash flow from operations, and borrowings under its revolving credit facility. Repurchases will be made in compliance with all SEC rules and other legal requirements, and may be made in part under a Rule 10b5-1 plan.

    The Board of Directors also declared a special cash dividend in the amount of $0.05 per share of common stock, for an expected total of approximately $325 million, payable on December 28, 2012. The company's preferred stock will participate in the dividend on an as-converted basis in accordance with its terms.

    Sirius XM Radio retains ample capital capacity to continue making long-term investments in its programming, research and development initiatives, and overall operations, as well as pursue strategic opportunities that may arise.

    With 23.4 million subscribers, SiriusXM is the world's largest radio broadcaster measured by revenue. SiriusXM also holds a minority interest in SiriusXM Canada which has more than 2 million subscribers. SiriusXM creates and broadcasts commercial-free music, premier sports talk and live events, comedy, news, exclusive talk, and entertainment. SiriusXM is available in vehicles from every major car company in the U.S., from retailers nationwide, and online.

    For more information, visit www.siriusxm.com

    Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html

    Stocks: SIRI
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