US food group B&G Foods has declared a regular quarterly cash dividend of US$0.17 per share of Class A common stock.
The dividend, payable on 30 July to holders of record as of 30 June, will include an interest payment of $0.2145 per EIS on the underlying 12% senior subordinated notes, the company said today (7 May).
The company has also announced that its board of directors has approved an increase to B&G Foods’ previously authorised stock and debt repurchase programme.
The terms of the expanded programme permits B&G Foods to repurchase up to an aggregate of $25m of the company’s Class A common stock and/or 8% senior notes through to 3 May 2010.
The company’s existing stock and debt repurchase programme had previously authorised the repurchase of up to $10m. Since the programme’s inception in October last year, the company has repurchased 763,931 shares of Class A common stock at an aggregate price of $3.5m.
President and CEO David Wenner said: “The declaration of a 19th consecutive quarterly dividend and the increase to our stock and debt repurchase programme emphasises the confidence that management and the board of directors has in the company’s prospects for the future and our continued ability to generate strong cash flows.
“We continue to believe that at current market prices, repurchasing our Class A common stock and/or senior notes represents an attractive investment opportunity and is an excellent use of our excess cash from operations to increase stockholder value.”
The company currently has 36,033,057 shares of Class A common stock outstanding and $240m of senior notes outstanding.
