DBI - Designer Brands up 2% will repurchase $100M shares
2023-06-08 06:57:19 ET
- Designer Brands ( NYSE: DBI ) Board of Directors authorizes the repurchase of up to $100M through a modified "Dutch Auction" tender offer at an anticipated cash purchase price of not less than $7.00 per share and not more than $8.00 per share.
- The company intends to enter into a $135M term loan agreement to be used principally to fund the offer, with the remaining availability to be used for general corporate purposes.
- The offer will commence on June 8, 2023, and end on July 7.
- "This commitment to Designer Brands' long-term value will utilize our existing share repurchase authorization and represents approximately 22% to 25% of our outstanding shares of Class A common shares," said Doug Howe, CEO. "This decision by the Board represents a significant investment in our own stock at what we believe are very attractive prices and reflects our belief that returning capital to shareholders is a prudent use of our anticipated term loan."
- Stock price up 2% during pre-market hours on Thursday.
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Designer Brands up 2%, will repurchase $100M shares