HSN surpasses billion-dollar debt threshold

ST. PETERSBURG — HSN Inc. is expanding its debt threshold past the billion-dollar mark so it can offer a $10 per share dividend.

The firm also announced plans to buy back another four million shares the company says will help bolster its equity compensation programs. The St. Petersburg-based multichannel retailer says it replaced a $600 million credit facility with a new one worth $1.25 billion. It includes a $750 million revolving credit plan as well as a $500 million term loan, which expires in 2020.

The dividend will cost HSN $525 million, the company reported in a filing with the U.S. Securities and Exchange Commission. The stock buyback would cost just under $300 million if shares were purchased at Tuesday's closing price of $74.94. Shares are traded on the Nasdaq under the symbol HSNI.