AptarGroup Announces $250 Million Accelerated Share Repurchase and Closes Private Placement of $475 Million
December 17 2014 - 7:00AM
Business Wire
AptarGroup, Inc. (NYSE: ATR) announced today that it has entered
into an agreement to repurchase approximately $250 million of its
common stock under an accelerated share repurchase program (the
“ASR program”). The ASR program is part of AptarGroup’s $350
million share repurchase authorization announced on October 30,
2014. Today, AptarGroup will pay $250 million to Wells Fargo Bank
N.A. in exchange for approximately 3.1 million shares, currently
estimated to represent approximately 80% of the total number of
shares expected to be purchased in the ASR program based on current
market prices. The ultimate number of shares to be repurchased
under the ASR program will be based on the volume-weighted average
price of AptarGroup’s common stock during the term of the ASR
program, less a discount.
Yesterday, AptarGroup completed a note purchase agreement for
the private placement of $475 million in Senior Notes to
institutional investors and expects to use proceeds from this
private placement for the ASR program and to refinance existing
debt.
“Share repurchases are an important element of our capital
allocation strategy,” said Stephen Hagge, President and Chief
Executive Officer. “Our strong financial condition allows us to
take advantage of the current favorable interest rate environment,
better optimize our capital structure, and return value to
shareholders with this $250 million accelerated repurchase.”
The private placement of $475 million in Senior Notes is
expected to be funded on two dates. An initial funding of $250
million was completed yesterday and includes two maturity tranches,
with $125 million of 3.49% Senior Notes due in December of 2023 and
$125 million of 3.61% Senior Notes due in December of 2025. A
second funding of $225 million is expected to occur in February of
2015 and will be comprised of $100 million of 3.49% Senior Notes
due in February of 2024 and $125 million of 3.61% Senior Notes due
in February of 2026.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities. The securities have not
been and will not be registered under the Securities Act of 1933,
as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from registration
under the Securities Act and applicable state securities laws.
AptarGroup, Inc. is a leading global supplier of a broad range
of innovative dispensing solutions for the beauty, personal care,
home care, prescription drug, consumer health care, injectables,
food, and beverage markets. AptarGroup is headquartered in Crystal
Lake, Illinois, with manufacturing facilities in North America,
Europe, Asia and Latin America. For more information, visit
www.aptar.com.
This press release contains forward-looking statements.
Forward-looking statements are made pursuant to the safe harbor
provisions of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 and are based on
management’s beliefs as well as assumptions made by and information
currently available to management. Our forward looking statements
include statements regarding our intentions to repurchase stock,
the method and timing as well as the number of shares repurchased,
related expenditures and the benefits of such transactions, as well
as statements regarding the anticipated closing of the second
funding of the private placement. Actual results may differ
materially from those expressed or implied in such forward-looking
statements due to known or unknown risks and uncertainties that
exist including, but not limited to, economic, environmental or
political conditions in the various markets and countries in which
AptarGroup operates; fiscal and monetary policies and other
regulation; and the ability of AptarGroup to satisfy the conditions
to the closing of the second funding of the private placement. For
additional information on these and other risks and uncertainties,
please see AptarGroup’s filings with the Securities and Exchange
Commission, including its Form 10-K’s and Form 10-Q’s. Readers are
cautioned not to place undue reliance on forward-looking
statements. AptarGroup undertakes no obligation to update
any forward-looking statements, whether as a result of new
information, future events or otherwise.
AptarGroup, Inc.Matthew DellaMaria, 815-477-0424
AptarGroup (NYSE:ATR)
Historical Stock Chart
From Mar 2024 to Apr 2024
AptarGroup (NYSE:ATR)
Historical Stock Chart
From Apr 2023 to Apr 2024