Market Overview

MCBC Holdings' MasterCraft Announces Special Cash Dividend Of $4.30 A Share


MasterCraft's principal firm MCBC Holdings Inc (NASDAQ: MCFT) revealed Friday that its Board has declared a special cash dividend of $4.30 per share. The company indicated the special dividend would total an aggregate payment of about $80.0 million.

According to the company, the special dividend would paid on June 10 to shareholders of record as of the close of business on June 6. The company said the special dividend would be funded from its existing cash, as well as, borrowings under a new credit facility.

MasterCraft said that at $4.30 per share, its special dividend represented about 33 percent of its closing stock price on May 26. As per NASDAQ rules, when a dividend is declared in a per share amount that exceeded 25 percent of its stock price, the ex-dividend is the first business day following the payable date.

The company said it expects the exchange to apply this rule and the ex-dividend date as set by NASDAQ will be June 13, 2016, the first business day following the dividend's payable date. The company cautioned that stockholders of record on the record date who sell their shares before the ex-dividend date would not get the special cash dividend.

MaserCraft's president and CEO, Terry McNew, said, "As we stated when we announced our share repurchase program in February, MasterCraft's Board is committed to consistently evaluating the most prudent uses of the company's strong balance sheet and free cash flow in order to maximize shareholder value, and today's announcement demonstrates that commitment. Our currently unlevered balance sheet and access to attractive financing allow us to recognize and reward shareholders with a meaningful return of capital. In addition, our new capital structure will allow us to create additional equity value going forward by utilizing free cash flow to repay debt."

He continued, "Following completion of this transaction we will maintain a very conservative balance sheet, ample liquidity, and strong cash generation. Most important, we preserve the financial and operational flexibility to pursue our key strategic growth initiatives and to continue driving the sustainable, profitable growth and margin expansion our investors have come to expect from MasterCraft."

The stock traded 12 percent higher on Friday.

Posted-In: News Dividends


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