Polycom To Buy Back $400 Mln Of Stock - Quick Facts

(RTTNews) - Polycom Inc. (PLCM) announced Wednesday that its Board has authorized the repurchase of $400 million, or about 20 percent of the company's outstanding common stock, through a $250 million modified "Dutch Auction" self-tender offer and subsequent open market purchases or privately negotiated transactions.

The company expects to fund the program with $150 million in cash and a new $250 million term loan. The Company intends to launch the tender offer on September 13, 2013, and expects it will expire on October 30, 2013.

The firm noted that it has retained Morgan Stanley Senior Funding Inc. as sole lead arranger and joint bookrunner for a new term loan facility, which will bear interest at LIBOR plus 1.75% and carry a maturity of five years. Closing and funding of the term loan is scheduled to be completed on September 13, 2013, subject to the execution of definitive documentation and the satisfaction of customary closing conditions.

The company stated that it intends to commence the $250 million self-tender offer at a price of not less than $10.00 and not more than $11.50 per share and, at the midpoint of such range, expects to purchase approximately 23 million shares. The self-tender offer is expected to commence on Friday, September 13, 2013, and expire at 5:00 pm, Eastern Daylight Time on Wednesday, October 30, 2013, unless extended.

The company expects to utilize the remaining approximately $150 million of the new $400 million share repurchase authorization for open market share repurchases or privately negotiated transactions.

The company added that it has repurchased $84 million of common stock in the first and second quarters of 2013. All buybacks are expected to be completed within one year.

This $400 million share repurchase authorization will supersede any remaining outstanding share repurchase authorization as of the commencement of the tender offer.

The company noted that its remaining repurchase authorization was $89 million as of June 30, 2013.