C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ:CHRW) today announced that the Board of Directors has increased the number of shares authorized to be repurchased by 15,000,000 shares. There are approximately 8,700,000 shares left from the previous authorization. The total current number of shares authorized for future repurchases is 23,700,000.
The company has entered into a $500 million Accelerated Share Repurchase (ASR) program with two banks, JPMorgan Chase Bank, National Association, and Morgan Stanley & Co. LLC. Under the ASR program, C.H. Robinson will receive an initial delivery of 6,118,882 shares. The final number of shares purchased will be determined at the completion of the ASR program based on the average of the daily Rule 10b-18 volume-weighted average prices of the company’s common stock during the term of the ASR program, less an agreed discount. The duration of the ASR program is expected to be four to seven months.
The company also announced that it has entered into an agreement to borrow $500 million from three lenders, Prudential, New York Life and MetLife, in a private placement transaction. The average maturity of the notes is 15 years and the weighted average coupon is 4.28%. The actual principal amount and rate of the notes by maturity is set forth below.
“We’re excited about executing both the debt agreement and the accelerated share repurchase program,” said John Wiehoff, Chief Executive Officer and Chairman of the Board. “Our execution of these transactions reflects our strong financial foundation and our commitment to building long term shareholder value. As we discussed during our recent quarterly earnings release, while shorter term earnings growth will remain challenging, we are confident in our long term strategy and ability to execute.”