PAREXEL (PRXL) in Agreement with HSBC to Purchase $200M Shares
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PAREXEL International Corporation (NASDAQ: PRXL) entered into an agreement to purchase shares of its common stock from HSBC Bank USA, National Association, for an aggregate purchase price of $200 million pursuant to an accelerated share purchase program. The Company is acquiring these shares as part of the stock repurchase plan that was announced on October 26, 2016. Under the stock repurchase plan, the Company’s Board of Directors has authorized the Company to repurchase up to $200 million of the Company’s outstanding shares of Common Stock.
Pursuant to the Agreement, on November 23, 2016, the Company will pay $200 million to HSBC and will receive from HSBC approximately 2.8 million shares of Common Stock, representing 80 percent of the shares to be repurchased by the Company under the Agreement. The shares will be repurchased at a price of $57.51 per share, which was the closing price of the Common Stock on November 21, 2016. These shares will be cancelled and restored to the status of authorized and unissued shares. The final number of shares to be delivered to the Company by HSBC under the Agreement at program maturity, net of the initial delivery, will be adjusted based on an agreed upon discount to the average of the daily volume weighted average price of the Common Stock during the term of the Agreement. If the number of shares to be delivered to the Company at maturity is less than the initial delivery of shares by HSBC, the Company would be required to remit shares or cash, at the Company’s option, to HSBC in an amount equivalent to such shortfall.
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