RCNI ex-dividend on 6/12 (33%, special)
RCN Corp will pay a special dividend of $9.33 on June 11 to holders as of Tuesday, June 12. That’s 32.8% of the share price of $28.440. The company also announced a small share repurchase program. This is part of a debt restructuring program unfortunately, following a lackluster performance in 1Q07, with EBITDA ahead and top-line short of estimates.
May 31st, 2007 at 10:39 am
How can the special dividend be payed on June 11th and the X-date is on June 12th?
May 31st, 2007 at 4:08 pm
The SEC has rules governing “Special Dividends.” That is, those that exceed a significant percentage of the stock’s price. If you read the original company declaration, it states each date: Record date is 04 June; Pay date is 11 June and the Ex-Date is 12 June.
June 4th, 2007 at 6:17 pm
It looks like this will be treated as a return of capital. Any confirming information?
June 4th, 2007 at 6:55 pm
Called them and she told me that we will receive a notice at the beginning of next year indicating the tax treatment of the dividend.
June 4th, 2007 at 7:00 pm
Yep, the dividend will be paid out of debt so definitely ROC for the most part.