DineEquity, Inc. DIN, the parent company of Applebee's Neighborhood
Grill & Bar and IHOP Restaurants, today announced a capital allocation
strategy that includes the approval by its Board of Directors of a first
quarter cash dividend of $0.75 per share of common stock. DineEquity's Board
of Directors today declared the dividend, payable on March 29, 2013, to the
Company's shareholders of record as of the close of business on March 15,
2013.
The Board of Directors also approved a $100 million share repurchase
authorization, effective immediately, which replaces the $45 million share
repurchase authorization previously announced by the Company in August 2011.
The Company remains subject to certain mandatory debt reduction requirements
related to capital leases and the annual amortization payment of $4.7 million
associated with the recently announced re-pricing of its senior secured credit
facility.
“With the successful completion of our refranchising program and a less
capital intensive business model, the time is right to announce our capital
allocation plan. With continual long-term shareholder value creation clearly
in mind, we are initiating a meaningful dividend and will also
opportunistically seek to repurchase shares of common stock with strong free
cash flow.” said Julia A. Stewart, Chairman and Chief Executive Officer of
DineEquity, Inc. “The dividend, combined with the share repurchase
authorization of $100 million, underscores our commitment to returning cash to
our shareholders. While we expect dividends and share repurchases to be the
primary components of our capital allocation strategy, we will also reduce
debt when it is in the best interests of the Company to do so. We will
continue to prudently manage our capital structure with a long-term view,
placing real importance on positioning ourselves to potentially refinance our
overall debt in the next few years.”
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Posted In: News
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in