As part of a O-I previously announced USD 500 million share repurchase program approved by O-I’s Board of Directors in October 2014, O-I has entered into an agreement with J.P. Morgan Chase Bank NA to repurchase USD 100 million of O-I’s common stock.
Owens-Illinois, Inc. (O-I) has announced that it has entered into an agreement with J.P. Morgan Chase Bank NA to repurchase USD 100 million of O-I’s common stock under an accelerated stock repurchase program (ASR). The ASR is part of a previously announced USD 500 million share repurchase program approved by O-I’s Board of Directors in October 2014. The company anticipates repurchasing at least an additional USD 25 million in shares over the course of the year using free cash flow generated from operations.
“Our strong cash flow generation in recent years continues to enhance our financial flexibility,” said Steve Bramlage, chief financial officer. “After several years of devoting about 10% of free cash flow to anti-dilutive share repurchases, we are now prepared to direct a substantially higher proportion of our cash to our shareholders. This program is a concrete first step in that direction.”
The specific number of shares O-I will ultimately repurchase under the ASR will be based on the daily volume weighted-average price of O-I’s common stock during the term of the agreement.