TEGNA Inc. Enters Into $325 Million Accelerated Share Repurchase Agreement
November 09 2023 - 8:00AM
Business Wire
TEGNA has committed this year to nearly $800 million in share
repurchases
TEGNA Inc. (NYSE: TGNA) today announced that it has entered into
an accelerated share repurchase agreement (“ASR”) with JPMorgan
Chase Bank, National Association (“JPMorgan”).
Under the terms of the ASR, TEGNA will repurchase $325 million
in TEGNA common shares from JPMorgan, with an initial delivery of
approximately 17.3 million shares on November 13, 2023. The final
number of shares to be repurchased will be based on the average
daily volume-weighted average price of TEGNA shares during the term
of the ASR, less a discount and subject to customary adjustments
pursuant to the terms of the ASR. The final settlement of the ASR
is expected to be completed by the end of the first quarter of
2024, subject to acceleration at JPMorgan’s discretion.
TEGNA completed its initial $300 million ASR program on August
31, 2023, earlier than anticipated. Following the completion of the
initial ASR and before entering TEGNA’s third quarter blackout
period on September 16, the Company opportunistically repurchased
an incremental $28 million of shares taking advantage of attractive
market pricing. The repurchases were made under TEGNA’s existing
share repurchase program approved by the Board of Directors in
December of 2020.
The initial $300 million ASR program reduced the Company’s
outstanding shares by approximately 18 million, including final
settlement of approximately 3 million shares.
Since the termination of the merger agreement, TEGNA has
committed this year to nearly $800 million in share repurchases
with approximately 45-50 million1 shares that will be retired by
end of March 2024, which is more than twenty percent of shares
outstanding prior to these actions. As of September 30, 2023, TEGNA
had retired a total of 28.7 million shares.
About TEGNA
TEGNA Inc. (NYSE: TGNA) is an innovative media company that
serves the greater good of our communities. Across platforms, TEGNA
tells empowering stories, conducts impactful investigations and
delivers innovative marketing solutions. With 64 television
stations in 51 U.S. markets, TEGNA is the largest owner of top 4
network affiliates in the top 25 markets among independent station
groups, reaching approximately 39 percent of all television
households nationwide. TEGNA also owns leading multicast networks
True Crime Network, Twist and Quest. TEGNA offers innovative
solutions to help businesses reach consumers across television,
digital and over-the-top (OTT) platforms, including Premion,
TEGNA’s OTT advertising service. For more information, visit
www.TEGNA.com.
1 Share retirement projection based on
TEGNA Inc. November 6, 2023, close price of $15.41. Actual share
retirement will depend on future share prices of TEGNA. As a
result, actual share retirement may vary from this projection.
Forward-Looking Statements
This communication includes forward-looking statements with the
meaning of the “safe harbor” provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. When used in the
communication, the words “believes,” “estimates,” “plans,”
“expects,” “should,” “could,” “outlook,” and “anticipates” and
similar expressions as they relate to the Company or its management
financial results are intended to identify forward-looking
statements. Forward-looking statements in this communication may
include, without limitation, statements regarding anticipated
growth rates and the Company's plans, objectives and expectations.
Forward-looking statements are based on a number of assumptions
about future events and are subject to various risks, uncertainties
and other factors that may cause actual results to differ
materially from the views, beliefs, projections and estimates
expressed in such statements, many of which are outside the
Company’s control. These risks, uncertainties and other factors
include, but are not limited to, risks and uncertainties related
to: changes in the market price of the Company’s shares, general
market conditions; constraints, volatility, or disruptions in the
capital markets; the possibility that the Company’s share
repurchases, including through ASR programs, may not enhance
long-term stockholder value; the possibility that share repurchases
could increase the volatility of the price of the Company’s common
stock; legal proceedings, judgments or settlements; the response of
customers, suppliers and business partners to the Company’s plans,
operations and business as a standalone company; the Company’s
ability to re-price or renew subscribers; potential regulatory
actions; changes in consumer behaviors and impacts on and
modifications to TEGNA's operations and business relating thereto;
other business effects, including the effects of industry, market,
economic, political or regulatory conditions; information
technology system failures, data security breaches, data privacy
compliance, network disruptions, and cybersecurity, malware or
ransomware attacks; and economic, competitive, governmental,
technological and other factors and risks that may affect the
Company’s operations or financial results, which are discussed in
our Annual Report on Form 10-K.
Readers are cautioned not to place undue reliance on
forward-looking statements made by or on behalf of the Company.
Each such statement speaks only as of the day it was made. We
undertake no obligation to update or to revise any forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20231109403172/en/
For media inquiries, contact: Anne Bentley Vice
President, Corporate Communications 703-873-6366
abentley@TEGNA.com
For investor inquiries, contact: Julie Heskett Senior
Vice President, Financial Planning & Analysis 703-873-6747
investorrelations@TEGNA.com
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