C.H. Robinson Worldwide Announces New Share Repurchase Program
MINNEAPOLIS -- August 26, 2013
C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ:CHRW) today announced
that the Board of Directors has increased the number of shares authorized to
be repurchased by 15,000,000 shares. There are approximately 8,700,000 shares
left from the previous authorization. The total current number of shares
authorized for future repurchases is 23,700,000.
The company has entered into a $500 million Accelerated Share Repurchase (ASR)
program with two banks, JPMorgan Chase Bank, National Association, and Morgan
Stanley & Co. LLC. Under the ASR program, C.H. Robinson will receive an
initial delivery of 6,118,882 shares. The final number of shares purchased
will be determined at the completion of the ASR program based on the average
of the daily Rule 10b-18 volume-weighted average prices of the company’s
common stock during the term of the ASR program, less an agreed discount. The
duration of the ASR program is expected to be four to seven months.
The company also announced that it has entered into an agreement to borrow
$500 million from three lenders, Prudential, New York Life and MetLife, in a
private placement transaction. The average maturity of the notes is 15 years
and the weighted average coupon is 4.28%. The actual principal amount and rate
of the notes by maturity is set forth below.
Maturity Amount Rate
10 years $ 175,000,000 3.97%
15 years 150,000,000 4.26%
20 years 175,000,000 4.60%
“We’re excited about executing both the debt agreement and the accelerated
share repurchase program,” said John Wiehoff, Chief Executive Officer and
Chairman of the Board. “Our execution of these transactions reflects our
strong financial foundation and our commitment to building long term
shareholder value. As we discussed during our recent quarterly earnings
release, while shorter term earnings growth will remain challenging, we are
confident in our long term strategy and ability to execute.”
Founded in 1905, C.H. Robinson Worldwide, Inc., is a global provider of
multimodal transportation services and logistics solutions, serving over
42,000 customers through a network of 250 offices in North America, Europe,
Asia, South America, the Middle East, and Australia. C.H. Robinson is one of
the largest third-party logistics companies in the world, with 2012 total
revenues of $11.3 billion. For more information about our company, visit our
Web site at www.chrobinson.com.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding C.H. Robinson Worldwide Inc’s
business which are not historical facts are “forward-looking statements” that
involve risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from those contained
in the forward-looking statements, see “Risk Factors” in the Company’s Annual
Report or Form 10-K for the most recently ended fiscal year.
C.H. Robinson Worldwide, Inc.
Tim Gagnon, 952-683-5007
director of investor relations
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