American Eagle Enters ASR Deal With JPMorgan To Repurchase $200 Mln Of Common Stock

Specialty retailer American Eagle Outfitters Inc. (AEO) announced Friday that it has entered into an accelerated share repurchase agreement (ASR) with JPMorgan Chase Bank, National Association to repurchase $200 million of the company's common stock. This equates to approximately 16.7 million shares based on the closing price on June 2, 2022 and represents approximately 8% of the company's fully diluted shares outstanding as of that date.

The ASR has been entered into in connection with AEO's existing share repurchase authorization of 30 million shares.

The company has also entered into exchange agreements with certain holders of its 3.75% Convertible Senior Notes due 2025 in exchange for a combination of cash and shares of the company's common stock.

The 2025 Notes to be exchanged represent approximately $342 million of the outstanding principal amount. Following the exchange, approximately $70 million in aggregate principal amount will remain outstanding. The exchange transactions are expected to close on June 8, 2022.

AEO expects to fund the cash portion of the amounts payable under the exchange agreements and the ASR using available cash on hand and borrowings under the company's existing $400 million ABL facility.

The company is also pursuing an upsize and extension of its ABL facility to $600 million with a term of 5 years, to unlock additional liquidity.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
United Airlines and Archer Aviation Inc. announced plans to launch the first commercial electric air taxi route in Chicago, between O'Hare International Airport or ORD and Vertiport Chicago. As part of their urban air mobility or UAM network buildout, both companies will utilize Archer's electric vertical takeoff and landing or eVTOL aircraft in the new route. Fort Wayne, Indiana-based Perfection Bakeries D/B/A Aunt Millie's is recalling 8 ct. packages of Our Family White Hot Dog Buns citing the possible presence of undeclared sesame, a known allergen, the U.S. Food and Drug Administration said. The product comes in a printed plastic package marked with "Our Family Hot Dog Buns 8 ct." on the top and has a blue twist tie. Parsippany, New Jersey -based Ascend Laboratories LLC. is recalling Dabigatran Etcxilate capsules citing the detection of N-Nitrosodimethylamine or NDMA impurity, a probable human carcinogen, the U.S. Food and Drug Administration said. The product is used as an oral anticoagulant to lower the risk of stroke and blood clots.
Follow RTT