TRW Automotive has announced a US$1bn share repurchase programme, which will commence in the current quarter of 2012 and extend through 31 December 2014.
The programme will utilise a variety of methods, which may include negotiated block transactions, accelerated share repurchase transactions or open market purchases. TRW said the timing of the repurchases will depend on several factors, including market and business conditions, and the repurchases may be discontinued at any time. Repurchased shares will be retired.
TRW has also confirmed that on 28 September, it completed the refinancing of its principal credit facility, which, among other things, increased its existing uS$1.0bn revolving credit facility to US$1.4bn and extended its maturity to 2017. There are currently no loans drawn under this facility. The new bank agreement increases the flexibility of the company’s capital structure.
Commented John C Plant, TRW’s Chairman and Chief Executive Officer: “The share repurchase programme announced today reflects TRW’s on-going commitment to maximising shareholder returns over time and demonstrates our confidence in sustaining positive earnings and cash flow from our operations. Our positive outlook and strong capital structure should allow TRW to continue making the necessary investments in our business in support of future growth while enhancing returns to our shareholders.”
