Scripps Sets Accelerated Share Repurchase
The E.W. Scripps Co. said Friday that it plans to repurchase $25 million of its Class A common shares, allowing the company to reduce its outstanding share count.
The accelerated plan falls under Scripps’ previously announced $100 million share repurchase authorization granted by the board of directors in November 2016.
“This accelerated repurchase plan reflects Scripps’ disciplined approach to considering how best to allocate capital — balancing business investment, acquisitions and return of capital,” said Lisa Knutson, Scripps executive vice president and chief financial officer. “We hope investors will appreciate the combination of income, share repurchases and long-term growth in our underlying cash flows.”
Under the accelerated repurchase agreement with JPMorgan Chase Bank, Scripps is paying $25 million to JPMorgan and receiving an initial delivery of approximately 1.4 million shares, which is about 80% of the total shares of the company’s common stock expected to be repurchased under the agreement. The final share amount will be determined based on the average of the daily volume-weighted average prices of Scripps’ Class A stock over the period of the agreement.
Scripps said it expects the accelerated share repurchase agreement to be completed no later than the first quarter of 2019. At settlement, Scripps may be entitled to receive additional shares of common stock from JPMorgan or, under certain circumstances, may be required to issue additional shares or make a cash payment to JPMorgan at Scripps’ option.