By Demian Russian
Sirius XM Radio Inc. (NASDAQ:SIRI) announced this morning that the company’s Board of Directors has approved a $2 billion stock buyback program. Liberty Media (NASDAQ:LMCA), beneficial owner of approximately 49.8% of Sirius XM Radio’s stock, has indicated that it will participate in the Sirius XM’s share repurchase program on a pro rata basis so that its relative ownership interest will not be affected by the program. Sirius XM will fund this stock repurchase program through cash on hand, future cash flow from operations and borrowings under its new $1.25 billion five-year senior secured revolving credit facility, which the company announced yesterday.
Along with the stock repurchase program, Sirius XM Radio’s Board of Directors also announced a special cash dividend in the amount of $0.05 per share of SIRI common stock, which will be payable on December 28th, 2012 to stockholders of record as of the close of business on December 18th, 2012. The company’s preferred stock will participate in the dividend on an as-converted basis in accordance with its terms. The total amount of the cash dividend is estimated to be about $325 million. Read More
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