Integrated media company Fisher Communications Inc. (FSCI: Quote) announced Monday that its board has declared a special cash dividend of $10 per share following the sale of Fisher Plaza. The board also approved a dividend policy intending to pay a quarterly cash dividend beginning in the fourth quarter of 2012 as a measure to return value to its shareholders. The shares rose about 7 percent in the morning trade.
The special cash dividend, to shareholders of record on September 28, is payable on October 19. The company expects the initial quarterly dividend rate to be $0.15 per share. Fisher noted that the special dividend totaling about $89 million, will be funded from its existing cash and short- and long-term investments. The company said it expects the special cash dividend to be taxable to shareholders.
Paul Bible, chairman of the board of directors stated, "The special dividend is an opportunity to efficiently return capital to all of our investors following the sale of Fisher Plaza. The quarterly dividend policy reflects our confidence that the successful execution of our strategic plan will continue to generate the strong cash flows that will enable us to invest in the business while returning excess cash to our shareholders."
In last December, Fisher Communications completed the sale of Fisher Plaza to Hines Global REIT Inc. for $160 million in cash.
According to the company, the payment and amount of quarterly dividends are subject to the board's approval. The board retains the right to cancel, suspend or modify the dividend policy in any manner and at any time that it may deem necessary or appropriate in the future, Fisher added.
In addition, Fisher said it has received a commitment letter from JPMorgan Chase Bank for a five-year $30 million senior secured revolving credit facility.
FSCI is currently trading at $36.07, up $2.25 or 6.64 percent, on a volume of 10 thousand shares on the Nasdaq.
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by RTT Staff Writer
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