Clearwater Paper Corporation (NYSE:CLW)
today announced that its board of directors has authorized the repurchase of up to $100 million of the company’s common stock, reflecting the company’s strong balance sheet and positive outlook on its business. This authorization follows the completion of the company’s previous $30 million stock repurchase authorization implemented by the board in July 2011. Clearwater Paper expects to fund the repurchases through available cash resources, including a portion of the proceeds of a proposed senior notes offering announced separately today.
“This stock repurchase program, which we intend to fully execute in 2013, emphasizes the board’s ongoing commitment to enhancing shareholder value,” said Linda K. Massman, president and chief executive officer. “With the successful start-up of our Shelby TAD paper machine, Clearwater Paper is poised to generate significant discretionary free cash flow. We are now focused on operational execution in the near term and upon completion of the stock repurchase program, we plan to return approximately 50% of discretionary free cash flow to our shareholders over the 2014 and 2015 timeframe.”
The repurchase program authorizes the company to purchase its common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. The company has no obligation to repurchase stock under this program and may suspend or terminate the program at any time.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, machine glazed tissue, bleached paperboard and pulp at 15 manufacturing locations in the U.S. and Canada. The company is a premier supplier of private label tissue to major retailers and wholesale distributors. This includes grocery, drug, mass merchants and discount stores. The company also produces bleached paperboard used by quality-conscious printers and packaging converters. Clearwater Paper’s employees build shareholder value by developing strong customer relationships through quality and service.