Advanced Energy Industries, Inc. announced recently it has entered into an Accelerated Share Repurchase (“ASR”) program in keeping with the company’s overall capital deployment strategy, as described in its press release dated September 16, 2015.The company has entered into an accelerated stock repurchase arrangement with Morgan Stanley & Co. LLC pursuant to a Fixed Dollar Accelerated Share Repurchase Transaction (“ASR Agreement”) to purchase approximately $50 million of shares of its common stock. The ASR Agreement will facilitate repurchases under the previously announced $150 million stock repurchase program.
The terms of the ASR Agreement provide for calculation of the final number of shares to be repurchased based generally on the average of the daily volume-weighted average prices of the company’s common stock during the term of the transaction, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreement. At settlement, under certain circumstances, the terms of the ASR Agreement provide for Morgan Stanley to deliver additional shares of common stock to the company, or under certain circumstances, the terms of the ASR Agreement provide for the company to deliver shares of common stock or to make a cash payment, at its election, to Morgan Stanley.
The ASR Agreement contains certain terms customary for agreements of this type, including provisions for adjustments upon the occurrence of certain corporate transactions or market events and the circumstances under which the ASR Agreement may be extended or terminated early or adjusted in other respects.The company anticipates completion of the ASR program in the first half of 2016.The company may implement the remaining portion of its $150 million stock repurchase program through open market purchases or privately negotiated transactions, including but not limited to issuer repurchase plans, additional accelerated stock repurchase arrangements or otherwise.