Post by luxetvox on Aug 9, 2023 13:06:25 GMT
From an 8-k yesterday, here's a look at one way a stock buyback can be effected:
On August 8, 2023, Laboratory Corporation of America Holdings (the Company) entered into accelerated share repurchase agreements (collectively, the ASR Agreements) with Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC (collectively, the Financial Institutions) to repurchase approximately $1.0 billion in the aggregate of the Company’s common stock (Common Stock), as part of the Company’s Common Stock repurchase program. Matthews South, Inc. served as capital markets advisor to the Company on the ASR transaction.
Under the ASR Agreements, the Company will make an aggregate payment of $1.0 billion to the Financial Institutions and will receive an aggregate initial number of 3,740,590 shares of Common Stock from the Financial Institutions. The specific number of shares that the Company ultimately will repurchase under the ASR Agreements will be based generally on the average of the daily volume-weighted average price per share of the Common Stock during a repurchase period, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreements. At settlement, under certain circumstances, the Financial Institutions may be required to deliver additional shares of Common Stock to the Company, or the Company may be required, at its election, either to make cash payments or deliver shares of Common Stock to the Financial Institutions. The ASR Agreements contain provisions customary for agreements of this type, including provisions for adjustments to the transaction terms, the circumstances generally under which the ASR Agreements may be accelerated, extended or terminated early by the Financial Institutions and various acknowledgments, representations and warranties made by the parties to one another. The transactions are expected to be completed by the end of December 2023.
On August 8, 2023, Laboratory Corporation of America Holdings (the Company) entered into accelerated share repurchase agreements (collectively, the ASR Agreements) with Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC (collectively, the Financial Institutions) to repurchase approximately $1.0 billion in the aggregate of the Company’s common stock (Common Stock), as part of the Company’s Common Stock repurchase program. Matthews South, Inc. served as capital markets advisor to the Company on the ASR transaction.
Under the ASR Agreements, the Company will make an aggregate payment of $1.0 billion to the Financial Institutions and will receive an aggregate initial number of 3,740,590 shares of Common Stock from the Financial Institutions. The specific number of shares that the Company ultimately will repurchase under the ASR Agreements will be based generally on the average of the daily volume-weighted average price per share of the Common Stock during a repurchase period, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreements. At settlement, under certain circumstances, the Financial Institutions may be required to deliver additional shares of Common Stock to the Company, or the Company may be required, at its election, either to make cash payments or deliver shares of Common Stock to the Financial Institutions. The ASR Agreements contain provisions customary for agreements of this type, including provisions for adjustments to the transaction terms, the circumstances generally under which the ASR Agreements may be accelerated, extended or terminated early by the Financial Institutions and various acknowledgments, representations and warranties made by the parties to one another. The transactions are expected to be completed by the end of December 2023.
