Calgon Carbon Announces $50 Million Accelerated Share Repurchase Program
PITTSBURGH--(BUSINESS WIRE)-- Calgon Carbon Corporation (NYS: CCC) announced that it has entered into an accelerated share repurchase (ASR) agreement with Morgan Stanley & Co. LLC to repurchase an aggregate $50 million of the company's stock. The ASR is part of the company's share repurchase program that was announced yesterday and supersedes any previously announced share repurchase program.
Under the agreement, Calgon Carbon will receive approximately 3.3 million shares at the inception of the ASR. The total number of shares ultimately repurchased under the agreement will be determined upon final settlement. The number of shares to be delivered at the completion of the program, net of the initial delivery, will be based primarily on the volume-weighted average price of Calgon Carbon common stock during the repurchase program. The company anticipates that all repurchases under the ASR will be completed no later than the third quarter of 2013.
The ASR will be funded through the company's U.S. revolving credit facility. As of September 30, 2012, the company had approximately $118 million available under its existing U.S. line of credit.
Steve Schott, Calgon Carbon's senior vice president and chief financial officer commented, "We believe that the repurchase of Calgon Carbon shares, which will be immediately accretive, is an attractive investment for the company. It also demonstrates our ability to deliver value to our shareholders through the prudent utilization of the company's capital structure."
Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.
For more information about Calgon Carbon's leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit www.calgoncarbon.com.
This news release contains historical information and forward-looking statements. Forward-looking statements typically contain words such as "expect," "believe," "estimate," "anticipate," or similar words indicating that future outcomes are uncertain. Statements looking forward in time, including statements regarding future growth and profitability, price increases, cost savings, broader product lines, enhanced competitive posture and acquisitions, are included in the company's most recent Annual Report pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. They involve known and unknown risks and uncertainties that may cause the company's actual results in future periods to be materially different from any future performance suggested herein. Further, the company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the company's control. Some of the factors that could affect future performance of the company are higher energy and raw material costs, costs of imports and related tariffs, labor relations, capital and environmental requirements, changes in foreign currency exchange rates, borrowing restrictions, validity of patents and other intellectual property, and pension costs. In the context of the forward-looking information provided in this news release, please refer to the discussions of risk factors and other information detailed in, as well as the other information contained in the company's most recent Annual Report.
Calgon Carbon Corporation
Gail A. Gerono, 412-787-6795
KEYWORDS: United States North America Pennsylvania
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