Lexmark announces pricing of debt offering and increase in share repurchase authorization
Posted on May 21, 2008
Filed Under Tech Biz
LEXINGTON, Ky., May 20 /PRNewswire-FirstCall/ — Lexmark International,
Inc. (NYSE: LXK) announced today that it priced yesterday an aggregate of
$650 million of fixed rate senior unsecured notes. The notes are split into
two tranches of five- and ten-year notes, respectively. The five-year
notes, which are in the amount of $350 million, will have an effective
yield to maturity of 5.939 percent and will mature June 1, 2013. The
ten-year notes, which are in the amount of $300 million, will have an
effective yield to maturity of 6.687 percent and will mature June 1, 2018.
The offering is subject to customary closing conditions and is expected to
close on May 22, 2008. As previously disclosed, the company intends to use
the net proceeds from the offering for general corporate purposes,
including to fund share repurchases, repay debt, finance acquisitions,
finance capital expenditures and operating expenses and invest in any
subsidiaries.
The company also announced today that its board of directors authorized
on May 20, 2008 the repurchase of an additional $750 million of its Class A
Common Stock.
The repurchase authority allows the company to selectively repurchase
its stock from time to time in the open market or in privately negotiated
transactions, depending upon market price and other factors, and the
company may use proceeds of the offering for such purpose. The repurchase
authorization provides management with the flexibility to make purchases at
its discretion without target price or timetable constraints.
This repurchase authorization raises the aggregate repurchase
authorization to $4.65 billion from the $3.90 billion previously granted by
the board. The company has used $3.65 billion of this prior authorization
to repurchase approximately 75.6 million shares. With the $750 million of
increased authority, the company now has approximately $1 billion of share
repurchase authority.
Statements in this release which are not historical facts are
forward-looking statements and involve certain risks and uncertainties,
including, but not limited to the results of the proposed debt transaction
and other risks and uncertainties related to the company as described in
the company’s Securities and Exchange Commission filings. The company
undertakes no obligation to update any forward-looking statement.
Lexmark has filed a registration statement (including a prospectus)
with the SEC for the offering referred to in this press release. The
prospectus in that registration statement and other documents Lexmark has
filed with the SEC can be obtained for free by visiting EDGAR on the SEC
Web site at http://www.sec.gov. Alternatively, Lexmark, any underwriter or any
dealer participating in the offering will arrange to send the prospectus if
requested by calling J.P. Morgan Securities Inc. collect at 212-834-4533 or
Citigroup Global Markets Inc. toll free at 1-877-858-5407.
About Lexmark
Lexmark International, Inc. (NYSE: LXK) provides businesses and
consumers in more than 150 countries with a broad range of printing and
imaging products, solutions and services that help them to be more
productive. In 2007, Lexmark reported $5.0 billion in revenue.
Lexmark and Lexmark with diamond design are trademarks of Lexmark
International, Inc., registered in the U.S. and/or other countries. All
other trademarks are the property of their respective owners.
SOURCE Lexmark International, Inc.
Share ThisComments
Leave a Reply