Calgon Carbon Announces $50 Million Accelerated Share Repurchase Program
Calgon Carbon Corp. announced it has entered into an accelerated share repurchase (ASR) agreement with Morgan Stanley & Co. LLC to repurchase an aggregate $50 million of the company’s stock. The ASR is part of the company’s share repurchase program that was announced Nov. 19, 2012 and supersedes any previously announced share repurchase program.
Under the agreement, Calgon Carbon will receive approximately 3.3 million shares at the inception of the ASR. The total number of shares ultimately repurchased under the agreement will be determined upon final settlement. The number of shares to be delivered at the completion of the program, net of the initial delivery, will be based primarily on the volume-weighted average price of Calgon Carbon common stock during the repurchase program. The company anticipates that all repurchases under the ASR will be completed no later than the third quarter of 2013.
The ASR will be funded through the company’s U.S. revolving credit facility. As of Sept. 30, 2012, the company had approximately $118 million available under its existing U.S. line of credit.
Steve Schott, Calgon Carbon’s senior vice president and CFO commented, “We believe that the repurchase of Calgon Carbon shares, which will be immediately accretive, is an attractive investment for the company. It also demonstrates our ability to deliver value to our shareholders through the prudent utilization of the company’s capital structure.”
Source: Calgon Carbon Corp.