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CORPAY, INC. 8-K Report, Corporate Update (Dec 17, 2018)

Reports
Other Events·Exhibits & Filings
Filing Date
Filed December 17, 2018
Period End
December 14, 2018
Security
CPAY
In the record · 2016–202610-K1210-Q328-K101

CPAY filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 101 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’16Mar ’16
  2. Leadership change8-K · Sep ’22Sep ’22
  3. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed December 17, 2018. Cited figures are marked; the original filing is the authoritative source.

Corpay, Inc. (formerly FleetCor Technologies, Inc.) announced on December 17, 2018, its entry into an accelerated share repurchase (ASR) agreement to buy back $220 milliona of its outstanding common stock.

This significant capital allocation strategy signals management's confidence in the company's valuation and future prospects. Investors should note that a substantial portion of the shares, approximately 85%b, are expected to be received shortly after the announcement, on December 18, 2018. The total number of shares repurchased will be determined at the end of the ASR period, which is anticipated to conclude by the end of the first quarter of 2019.

The repurchase price will be based on a discount to the volume-weighted average price of the company's stock during this period, which is a common feature of ASR agreements designed to benefit the company. This move is generally viewed positively by investors as it can increase earnings per share and return value to shareholders.

02—Key points

Key Highlights

  1. Corpay, Inc. (CPAY) announced a $220 million Accelerated Share Repurchase (ASR) program.
  2. The ASR program aims to repurchase the company's outstanding common stock.
  3. Approximately 85% of the shares are expected to be repurchased and received by December 18, 2018.
  4. The total number of shares repurchased will be determined at final settlement, based on a discount to the volume-weighted average price.
  5. The ASR program is expected to be completed by the end of the first quarter of 2019.
  6. This action indicates management's belief that the company's stock is undervalued.

03—Questions

Frequently Asked Questions

  1. What is an Accelerated Share Repurchase (ASR) agreement?

    An Accelerated Share Repurchase (ASR) agreement is a contract between a company and an investment bank where the company agrees to buy back a significant amount of its own stock. The bank typically buys the shares on the open market and delivers them to the company quickly, often within a few days. The final number of shares repurchased and the price are determined at a later date based on the average market price over a specified period, usually with a discount to the company.

  2. Why is Corpay repurchasing its shares?

    Companies typically repurchase shares when they believe their stock is undervalued by the market, or to return capital to shareholders. It can also increase earnings per share (EPS) by reducing the number of outstanding shares.

  3. How will the share repurchase affect my investment?

    The repurchase can potentially increase the value of your existing shares by reducing the total number of shares outstanding, which could lead to a higher earnings per share (EPS). However, the ultimate impact depends on various market factors and the company's future performance.

  4. When will the repurchase be fully completed?

    The company anticipates that all repurchases under this ASR program will be completed by the end of the first quarter of 2019.

04—Continue

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