Cablevision Payout on the Way

Cablevision (CVC Quote) will put about $600 million in the founding Dolan family's pockets, as the Long Island cable giant gets set to pay a $3 billion special dividend.

The Bethpage, N.Y., cable operator says it will issue a $10 dividend on April 24 for all investors holding the stock as of April 18.

The decision comes after the nation's No. 6 cable shop ditched a $7.9 billion plan to take the company private last year. In the aftermath, the controlling family, led by CEO James Dolan and his father, Chairman Charles Dolan, hatched a plan to pay a special $3 billion dividend.

But in December the company canceled the dividend after finding it had run afoul of guarantees it had made to secure an earlier credit line.

In February, though, Cablevision secured a new credit facility, allowing the company to use up to $3.1 billion of additional funds from an uncommitted incremental credit facility. The dividend question was put before a committee of two independent directors last month.

The Dolan family, which runs the company and holds a 20% stake in the business, stands to reap more than $600 million in proceeds from the $3 billion payout.

Cablevision shares were up 78 cents to $28.03 in midafternoon trading Monday.