Parexel (PRXL) Enters $200M Accelerated Share Repurchase Plan with HSBC Bank
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PAREXEL International Corporation (Nasdaq: PRXL) announced that the Company entered into an accelerated share repurchase agreement (ASR) with HSBC Bank USA, National Association, to purchase shares of its common stock for an aggregate purchase price of $200 million. The Company is acquiring these shares as part of the stock repurchase plan authorized by the Board that was announced on October 26, 2016. Pursuant to the agreement, on November 23, 2016, the Company will initially receive 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. The total number of shares ultimately repurchased by PAREXEL under the agreement will be determined upon final settlement, using prices based generally on the volume-weighted average price of the Company’s common stock over a period of time not expected to exceed six months. These shares will be cancelled and restored to the status of authorized and unissued shares.
The Company intends to use cash on hand, cash generated from operations, existing credit facilities or other financing to fund the share repurchase program. As of September 30, 2016, the Company had cash and cash equivalents of approximately $326 million and availability under an existing line of credit of $325 million. As of November 11, 2016, the Company had approximately 53.3 million common shares outstanding.
Mr. Josef von Rickenbach, Chairman and CEO of PAREXEL stated, “This share purchase program demonstrates our commitment to optimize the capital structure of the Company and to maximize value for our shareholders. After the completion of this current share repurchase program, the Company will have returned more than $750 million to shareholders since Fiscal Year 2013.”
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Related EntitiesHSBC, Stock Buyback, Earnings
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