Quest Software To Buy Back Shares In Dutch Auction

ALISO VIEJO, Calif. (AP) — Quest Software Inc. said Monday it plans a "modified Dutch auction" tender offer to buy back about $150 million worth of its common shares.

The business software maker said the offer covers up to 10.7 million shares, or about 11.3 percent of its shares outstanding.

The Aliso Viejo, Calif.-based company said it will pay no more than $14 or no less than $12.50 per share under the offer.

The company's shares closed Monday near the midpoint of that range, finishing up 32 cents, or nearly 2.5 percent, at $13.24.

The modified Dutch auction lets stockholders choose how many shares and at what price within Quest Software's specified range they want to tender. They can do so without incurring any brokerage fees or commissions.

Quest Software said its tender offer was expected to begin on or about Tuesday, and will remain open for at least 20 business days.

The company said it plans to fund the share repurchase using available cash resources, and available borrowing under a $100 million revolving credit agreement.

As of March 31, the company had about $310.6 million in cash and cash equivalents, restricted cash and short-term and long-term investments, and no outstanding balance under its revolving credit facility.