AOL Inc. (NYSE: AOL) announced today that its Board of Directors authorized an additional $150 million share repurchase authorization. Year-to-date, AOL has repurchased 1.4 million shares of common stock at an average price of $35.65, or $50 million in aggregate, bringing AOL’s total current available authorization to $200 million. The timing and amount of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions, the trading price of the stock and other factors. The repurchases may be made over the next 12 months on the open market, in block trades or otherwise, and may include derivative transactions. The repurchase program may be suspended or discontinued at any time.
At the same time, AOL’s Board has authorized the Company to enter into a five-year secured $250 million revolving credit facility with a syndicated bank lending group, led by JP Morgan Chase Bank, N.A. The facility is secured by substantially all the assets of AOL and its material domestic subsidiaries, subject to customary exceptions, and was not drawn upon at closing. AOL intends to use borrowings under this facility for general corporate purposes.
“Today’s announcement significantly strengthens AOL’s capital structure and marks another step forward in our financial progress,” said AOL Executive Vice President and CFO, Karen Dykstra. “The oversubscribed credit facility underscores the debt market’s receptiveness to AOL and significantly improves our financial flexibility to allocate capital to our strategic priorities, as well as continue our track record of returning capital to our shareholders.”
About AOLAOL Inc. (NYSE: AOL) is a brand company, committed to continuously innovating, growing, and investing in brands and experiences that inform, entertain, and connect the world. The home of a world-class collection of premium brands, AOL creates original content that engages audiences on a local and global scale. We help marketers connect with these audiences through effective and engaging digital advertising solutions.