- Northrop Grumman ( NYSE: NOC ) said Thursday it entered into an accelerated share repurchase agreement with Bank of America to buy back $500 million of its common stock.
- The ASR is in addition to previously planned repurchases, including open market share repurchases, Northrop said.
- Under ASR agreement, the company expects to receive an initial delivery of about 0.9 million shares on Feb. 6, representing about 80 percent of the expected share repurchases under the ASR agreement, based on the company’s closing price of $440.86 on Feb. 2, 2023.
- The ASR will be completed under the company’s current share repurchase authorization, which currently has about $2.5 billion remaining.
- The company said it continues to target returning more than 100% of its free cash flow to shareholders through dividends and share repurchases in 2023.
- Shares +1.6% at $447.99 after hours.
For further details see:
Northrop Grumman launches $500M accelerated share buyback