CBOE Holdings, Inc. (NASDAQ: CBOE) announced today that its Board of Directors has declared a special cash dividend of$0.50 per share of common stock. The special dividend will be paid on January 17, 2014 to stockholders of record at the close of business on January 3, 2014.
The company's Board of Directors also authorized the company to repurchase an additional $100 million of its outstanding common stock, to be used in addition to any unused amount remaining under prior authorizations. The new authorization brings the total amount available for stock repurchases to approximately $167 million at December 9, 2013. The company had approximately 87 million shares of common stock outstanding at December 9, 2013.
"We are pleased to return capital to stockholders through a special dividend and an increased share repurchase authorization. Both actions reflect our continued commitment to create value for stockholders and the Board's confidence in our ability to generate cash while retaining the financial flexibility to support our plans for future growth,'' said Edward T. Tilly, CBOE Holdings CEO.
"We take a disciplined approach to managing cash, looking first to fund the growth of our business, then to return capital to our stockholders through sustainable quarterly dividends and share repurchases. While this special dividend should not be viewed as a recurring event, our Board will continue to consider all capital allocation alternatives," Tilly added.
The repurchase program permits the company to purchase shares through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. It does not obligate the corporation to make any repurchases at any specific time or situation. The timing and extent to which the company repurchases its shares will depend upon, among other things, market conditions, share price, liquidity targets, regulatory requirements and other factors. Share repurchases may be commenced or suspended at any time or from time to time without prior notice.
Forward-Looking Statements:
Certain information contained in this news release may constitute forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and are subject to a number of risks and uncertainties
