Cablevision Systems Cancels $3b Dividend

Summary


Cablevision Systems has scrapped plans for a $3 billion special dividend and a senior note offering to finance that dividend after the company uncovered violations of a bank credit agreement and potential violations of other debt instruments. On the news, shares of Cablevision shed 99 cents, or 4 percent, to $23.01 Monday afternoon.

The move is the latest flip-flop by the company, which, since April, has shuttered its new Voom satellite TV service and reversed course on a plan to take the core cable business private and spin off its broadcast and entertainment assets. In a conference call, Cablevision Chief Executive James Dolan called the covenant violations technical in nature, but added that the dividend and debt offering would be shelved until a review of other possible breaches was complete.

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Cablevision Systems Cancels $3b Dividend

Officials said the...

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