Canadian Satellite Radio Holdings Inc., parent of Sirius XM Canada Inc., today announced that the Company's Board of Directors has declared a special cash dividend of C$0.0825 per Class A Subordinate Voting Share and C$0.0275 per Class B Voting Share. In addition, the Company has initiated a quarterly cash dividend of C$0.0825 per Class A Share and Class C Non-Voting Share and C$0.0275 per Class B Share.
The special dividend will have a record date of November 28, 2012 and a payment date of January 2, 2013. The Board of Directors also declared the first quarterly cash dividend to shareholders of record on November 28, 2012, payable on January 2, 2013. Pursuant to the new quarterly dividend policy, subject to Board approval, SiriusXM Canada intends to declare a cash dividend of $0.0825 per Class A and C Share and $0.0275 per Class B Share quarterly with the next dividend declaration in January, 2013.
"The decision to provide a special dividend as well as introduce a quarterly dividend is a strong testament to the proven cash generation capabilities of the business and our excellent growth," said Mark Redmond, President and CEO, SiriusXM Canada. "We have a stable recurring revenue stream, and we have been able to realize cost synergies without sacrificing growth. We are confident in the Company's ongoing financial strength, operational efficiency and ability to grow free cash flow. The Board of Directors will continue to assess the quarterly dividend payout level."
Both the special and quarterly dividends on the Class A Shares and Class B Shares, and any quarterly dividends on the Class C Shares, are designated as an "eligible" dividend for the purposes of the Income Tax Act (Canada) and any similar provincial legislation.
Class B Shares in the Company are convertible at any time at the holder's option into fully paid and non-assessable Class A Shares upon the basis of one Class A Share for three Class B Shares. The Company has issued 185,879,935 Class B Shares, which represent 61,959,978 Class A Shares based on the aforementioned conversion right. In the event that all Class B Shares are converted to Class A Shares, the total outstanding number of Class A Shares would be 123,154,230. There are currently no Class C Shares outstanding.