Cooper-Standard Surges AFter $200 Million Buyback: Mover
Cooper-Standard Holdings Inc. (COSH) rose the most in more than 18 months after the auto-parts supplier announced plans to buy back as much as $200 million of its stock.
The shares rose 14 percent to $41 at the close in New York, the biggest one-day gain since Aug. 31, 2011. As a result of today’s trading, they have increased 7.9 percent this year compared with a rise of 8.6 percent for the Standard & Poor’s 500 Index.
Cooper-Standard, based in Novi, Michigan, said in a statement that it would repurchase as many as 4.65 million shares of its stock, about 21 percent of its shares outstanding on a fully diluted basis, for $43 each. The offer represents a 19 percent premium to yesterday’s closing price of $36 and 14.5 percent to the year-to-date volume-weighted average price of $37.56.
The company, whose products include door seals, fuel lines and engine mounts, said it expects to use cash and borrow as much as $175 million to pay for the shares. The tender offer is scheduled to start the week of April 1 and last for at least 20 business days, Cooper-Standard said.
In a separate statement, Cooper-Standard said it’s making a private offering of $175 million in notes due 2018 in connection with the stock buyback.
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