Fleetcor Technologies (FLT) Announces $220 Million ASR Program
FLEETCOR Technologies, Inc. (NYSE: FLT), a leading global provider of commercial payment solutions, announced today that it has entered into an Accelerated Share Repurchase (“ASR”) program with Bank of America, N.A. to repurchase $220 million of common stock under its current share repurchase authorization.
Prior to this repurchase program, FLEETCOR had repurchased 1,769,954 shares for $345.4 million in the fourth quarter of 2018. Including the shares expected to be repurchased in the ASR program announced today, FLEETCOR will have repurchased approximately 3 million shares in the fourth quarter, and a total of approximately 4.9 million shares in 2018. These repurchases represent a substantial return of capital to shareholders by reducing outstanding shares by approximately 5.5%, or $946 million, since December 31, 2017.
The Company expects to fund the repurchase with a combination of debt and cash. Approximately 85 percent of the shares expected to be repurchased under the transaction will be received by FLEETCOR on December 18, 2018. The total number of shares ultimately repurchased under the program will be determined upon final settlement and will be based on a discount to the volume-weighted average price of FLEETCOR’s common stock during the ASR period. FLEETCOR anticipates that all repurchases under the ASR will be completed by the end of the first quarter of 2019.
Subsequent to completion of this ASR, FLEETCOR is expected to have approximately $64 million remaining under its current repurchase authorization.