ResMed to Buy Back $450M in Stock Under Accelerated Share Repurchase Agreement
Dow Jones
Yesterday
ResMed will buy back $450 million of its stock under an accelerated share repurchase agreement with Citibank.
The buybacks are being made under a 20 million-share repurchase authorization from 2014, the medical equipment company said in a Tuesday regulatory filing. The purchase will be funded with cash on hand and proceeds from the company's sale of its MatrixCare business.
The company said it will make the $450 million payment to Citibank on Thursday, and will receive 80% of that total in stock the same day. The final number of shares will be based on the stock's volume-weighted daily average price during the term of the agreement, which is set to be settled by December.
ResMed said it had contemplated the transaction in its full-year guidance issued early last month.
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