United Therapeutics Corp. made an announcement on Monday authorizing the repurchase of up to $1 billion of its shares by the company's Board. The announcement goes hand in hand with the company's planned paydown of $400 million for its revolving credit facility due in 2024. Out of the predetermined amount, $100 million was already paid down during the first three months of 2024.
To carry out the repurchase, United Therapeutics has decided to enter into an Accelerated Share Repurchase (ASR) agreement with Citibank, N.A. According to the terms of agreement, United Therapeutics will pay an upfront amount of $1 billion to Citi and in return receive an initial delivery of shares. These shares are estimated to represent around 80% of the total shares anticipated to be repurchased.
It's expected that the final settlement of the ASR will take place in the second quarter concerning $300 million, and in the third quarter for the remaining $700 million. As stated by the company, there were approximately 47.1 million shares outstanding as of February 14th.
