LIVONIA, Mich., Oct. 1, 2012 /PRNewswire/ -- TRW Automotive Holdings Corp. (NYSE: TRW), the global leader in active and passive safety systems, today announced that its Board of Directors has authorized a $1 billion share repurchase program. The repurchase program, which will commence in the fourth quarter of this year, is expected to be executed over two years. In implementing the program, the Company may utilize a variety of methods, which may include negotiated block transactions, accelerated share repurchase transactions or open market purchases, some of which may be effected through Rule 10b5-1 plans, or by any combination of the foregoing. The timing of the repurchases will depend on several factors, including market and business conditions, and the repurchases may be discontinued at any time.
In addition, on September 28, 2012, the Company completed the refinancing of its principal credit facility, which, among other things, increased the Company's existing $1.0 billion revolving credit facility to $1.4 billion and extended its maturity to 2017. There are currently no loans drawn under this facility. The new bank agreement increases the flexibility of the Company's strong capital structure.
"The share repurchase program announced today reflects TRW's on-going commitment to maximizing shareholder returns over time and demonstrates our confidence in sustaining positive earnings and cash flow from our operations," said
John C. Plant, Chairman and Chief Executive Officer. "Our positive outlook and strong capital structure should allow TRW to continue making the necessary investments in our business in support of future growth while enhancing returns to our shareholders."
Conference CallThe Company will host a brief conference call at 9:00 a.m. (Eastern time) today, Monday, October 1, 2012, to discuss today's capital structure announcement. The Company will not be providing an update on the current quarter nor will any topics be discussed other than those pertaining to TRW's capital structure. To participate in the conference call, please dial (877) 852-7898 for U.S. locations, or (706) 634-1095 for international locations.
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