Charles River Associates (CRAI) Plans $30M Common Stock Tender

Charles River Associates (Nasdaq: CRAI) announced the commencement of a modified “Dutch auction” self-tender offer to purchase for cash up to $30 million in value of shares of its common stock at a price within (and including) the range of $18.00 to $19.75 per share. The closing price of CRA’s common stock on Friday, February 19, 2016, the last full trading day prior to the commencement of the tender offer, was $17.14 per share.

“Return-of-capital initiatives such as this buyback, and our existing share repurchase plan, are key elements in our capital allocation strategy,” said Paul Maleh, CRA’s President and Chief Executive Officer. “Today’s announcement underscores our confidence in CRA’s growth prospects and our commitment to provide value for our shareholders.”

The tender offer will expire at 5:00 pm, Eastern Time, on Monday, March 21, 2016, unless extended by CRA. Tenders of CRA’s common stock must be made prior to the expiration of the tender offer and may be withdrawn at any time prior to the expiration of the tender offer.

CRA intends to finance the tender offer with cash on hand and by borrowing under its existing revolving credit facility.

The modified “Dutch auction” will allow shareholders to indicate how many shares and at what price or prices within CRA’s specified range they wish to tender. Based on the number of shares tendered and the prices specified by the tendering shareholders, CRA will determine the lowest price per share within the range that will enable it to purchase up to $30 million of its common stock or a lesser amount if the offer is not fully subscribed. CRA also reserves the right to purchase up to an additional 2% of its shares outstanding pursuant to and without amending or extending the tender offer.

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