United Therapeutics Authorizes Up to $2B Stock Repurchase Program
United Therapeutics announced that the company's board of directors has authorized a new stock repurchase program of up to $2B over the next year. In addition, the company entered into ASR agreements with Citibank to implement an initial $1.5B accelerated share repurchase, or ASR, program. The remaining amount of up to $500M will be available for additional repurchases in United Therapeutics' discretion, over a one-year period. Under the terms of the ASR agreements with Citi, which comprise a $750M uncollared agreement and a $750M collared agreement, United Therapeutics will make an aggregate upfront payment of $1.5B on or around March 11 to Citi and United Therapeutics will receive an initial delivery of shares representing approximately 70% of the total shares anticipated to be repurchased under the uncollared ASR agreement; and approximately 50% of the total shares anticipated to be repurchased under the collared ASR agreement, in each case, measured based on the closing stock price of UTHR common stock on March 9. United Therapeutics will also receive an additional delivery of shares under the collared ASR, following the completion of an agreed-upon hedging period and the subsequent determination of the minimum and maximum share amounts to be repurchased under the collared ASR, equal to the difference between such minimum share amount and the initial delivery of shares.
