Summary
The Hartford Financial Services Group, Inc. (HIG) announced on June 4, 2008, a material definitive agreement to repurchase $500 million of its common stock. This agreement was executed with Credit Suisse International as a collared accelerated stock repurchase program. The company has already paid the $500 million to Credit Suisse, which will manage the buyback. The number of shares repurchased will be determined by the volume-weighted average share price during the repurchase period, with provisions for a minimum and maximum number of shares. Credit Suisse will initially deliver a minimum number of shares, and The Hartford may receive additional shares based on the stock's performance over time, subject to a cap. Shares repurchased will be held in treasury.
Key Highlights
- 1The Hartford initiated a $500 million accelerated stock repurchase program.
- 2The agreement was entered into with Credit Suisse International.
- 3The company has paid the full $500 million to Credit Suisse.
- 4The number of shares repurchased will be subject to volume-weighted average pricing with collar provisions (minimum and maximum shares).
- 5Credit Suisse will deliver a minimum number of shares initially.
- 6The Hartford may receive additional shares based on stock price performance.
- 7Repurchased shares will be held as treasury stock.