CenturyLink (CTL) Announces $2B Share Buyback, But Cut Dividend

February 13, 2013 4:27 PM EST
CenturyLink, Inc. (NYSE: CTL) said it board of directors authorized the repurchase of up to an aggregate $2.0 billion of the company's outstanding common stock.

In connection with the new repurchase program, the board also indicated its intention to revise the company's quarterly dividend rate to $0.54 from $0.725 per share. The board expects to approve this new rate at its next regularly-scheduled meeting on February 26, 2013, with the change effective with the March 2013 quarterly dividend payment.

CenturyLink also expects to utilize a portion of its free cash flow generated in 2013 and 2014 to repay debt and maintain leverage at less than 3.0 times EBITDA (earnings before interest, taxes, depreciation and amortization).

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