Helen of Troy launches effort to repurchase shares
Retail Editor 4 -- Home Textiles Today, February 10, 2014
El Paso, Texas - Helen of Troy, supplier of the housewares brand Oxo, initiated an effort today to repurchase up to $300 million of its common shares.
The company launched what is known as a Dutch auction, or an auction which starts with a high price that gradually decreases. Tendering shareholders can name a price not greater than $66.50 per share or less than $57.75 per share that they are willing to sell their shares of common stock. The number of shares to be purchased in the Offer represents approximately 14.06% to 16.19% of Helen of Troy's outstanding shares. Helen of Troy stock closed on Friday at $59.35 per share.
The offer expires at midnight EST tonight.
Helen of Troy plans to use a combination of cash on hand and borrowings under its existing revolving credit facility to repurchase the stock.
The company has come under fire recently from activist shareholder, Sachem Head Capital Management, which is pressuring the company to sell itself.
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