Rockwell Collins enters into accelerated share repurchase agreement
CEDAR RAPIDS, Iowa .- Rockwell Collins, Inc. (NYSE: COL) announced that earlier today it repurchased 3.0 million shares, or approximately 1.8 percent of its outstanding common stock. The shares were purchased from UBS AG, London Branch in conjunction with an accelerated share repurchase agreement at an initial total cost of $224 million, or $74.77 per share.
Under terms of the agreement, Rockwell Collins was able to immediately repurchase the 3.0 million shares. The repurchased shares are subject to a future price adjustment to be determined based on the volume weighted average market trading price of Rockwell Collins common stock over a period of up to two and one-half months.
“Our ability to generate significant operating cash flow enables us to execute on all elements of our capital deployment strategy, including returning value to shareowners through an active share repurchase program,” said Rockwell Collins Senior Vice President and Chief Financial Officer Patrick Allen. “This particular method of repurchasing shares is an economically attractive way for us to immediately deploy available capital.”
Following the completion of this transaction, the company has $16 million of authorized share repurchases remaining.
In addition, the company reaffirmed its fiscal year 2008 earnings per share guidance range of $3.80 to $3.95 as the shares repurchased under this agreement were contemplated in the company’s original plan for fiscal year 2008 share repurchases.
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