CRYSTAL LAKE, Ill.–(BUSINESS WIRE)–Dec. 17, 2014–AptarGroup, Inc. (NYSE: ATR) announced that it has entered into an agreement to repurchase approximately $250 million of its common stock under an accelerated share repurchase program (the “ASR program”). The ASR program is part of AptarGroup’s $350 million share repurchase authorization announced on October 30, 2014. AptarGroup will pay $250 million to Wells Fargo Bank N.A. in exchange for approximately 3.1 million shares, currently estimated to represent approximately 80% of the total number of shares expected to be purchased in the ASR program based on current market prices. The ultimate number of shares to be repurchased under the ASR program will be based on the volume-weighted average price of AptarGroup’s common stock during the term of the ASR program, less a discount.
AptarGroup completed a note purchase agreement for the private placement of $475 million in Senior Notes to institutional investors and expects to use proceeds from this private placement for the ASR program and to refinance existing debt.
“Share repurchases are an important element of our capital allocation strategy,” said Stephen Hagge, President and Chief Executive Officer. “Our strong financial condition allows us to take advantage of the current favorable interest rate environment, better optimize our capital structure, and return value to shareholders with this $250 million accelerated repurchase.”
The private placement of $475 million in Senior Notes is expected to be funded on two dates. An initial funding of $250 million was completed yesterday and includes two maturity tranches, with $125 million of 3.49% Senior Notes due in December of 2023 and $125 million of 3.61% Senior Notes due in December of 2025. A second funding of $225 million is expected to occur in February of 2015 and will be comprised of $100 million of 3.49% Senior Notes due in February of 2024 and $125 million of 3.61% Senior Notes due in February of 2026.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and applicable state securities laws.