Summary
Exelon Corporation announced on September 10, 2007, that it has entered into accelerated share repurchase (ASR) transactions totaling $1.25 billion with affiliates of Lehman Brothers Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated. This action follows the company's earlier board approval on August 31, 2007, to repurchase up to $1.25 billion of its outstanding stock. The ASR agreements will result in Exelon purchasing its common stock from Lehman and Merrill. Both counterparties will deliver an initial tranche of shares shortly after the transaction's execution, with potential for additional deliveries. The final number of shares repurchased will be determined within a specified range for each transaction. The funding for these repurchases will primarily come from Exelon's available cash, signaling a strategic move to return capital to shareholders and potentially enhance shareholder value.
Key Highlights
- 1Exelon Corporation executed accelerated share repurchase (ASR) transactions totaling $1.25 billion.
- 2The ASR transactions are with affiliates of Lehman Brothers Inc. and Merrill Lynch.
- 3This move aligns with Exelon's previously announced board approval on August 31, 2007, for a $1.25 billion share repurchase program.
- 4The company will purchase its own common stock from the financial institutions involved.
- 5Initial deliveries of shares are expected shortly after the transaction execution, with potential for further deliveries.
- 6The total number of shares repurchased is subject to minimum and maximum limits.
- 7The $1.25 billion funding for the ASR program will be primarily sourced from Exelon's available cash.