CHICAGO, July 31, 2012 /PRNewswire/ -- CBOE Holdings, Inc. (Nasdaq: CBOE) today announced that its Board of Directors approved a 25-percent increase to its quarterly cash dividend to $0.15 per share from $0.12 per share and authorized the company to repurchase an additional $100 million of its outstanding unrestricted common stock.
The share repurchase authorization is in addition to any unused amount remaining under the existing $100 million share repurchase authorized in August 2011. As of July 31, 2012, there was approximately $3.3 million remaining under the prior authorization, and the company had approximately 87.3 million shares of unrestricted common stock outstanding.
The dividend increase is effective with the third quarter dividend payable on September 21, 2012 to stockholders of record on August 31, 2012."These Board actions confirm our ongoing commitment to enhance stockholder returns and demonstrate confidence in our ability to continue to generate strong cash flows. The combination of dividends and share repurchases provides us flexibility in evaluating our capital allocation alternatives going forward, which is particularly important in light of impending tax law changes," said William Brodsky, Chairman and CEO of CBOE Holdings. "We will continue to prioritize our capital requirements first, to provide the funds needed to support the growth of our business, and then explore other alternatives to deliver sustainable value to our stockholders." The repurchase program permits the company to purchase shares through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. It does not obligate the corporation to make any repurchases at any specific time or situation. The timing and extent to which the company repurchases its shares will depend upon, among other things, market conditions, share price, liquidity targets, regulatory requirements and other factors. Share repurchases may be commenced or suspended at any time or from time to time without prior notice.