AOL gets OK to repurchase another $150M in stock
NEW YORK (AP) — AOL Inc. said Monday that its board approved the repurchase of an additional $150 million in stock and the company's entrance into a new five-year $250 million credit facility.
So far this year, the New York-based internet company has bought back 1.4 million shares of common stock at an average price of $35.65, or a total of $50 million. That brings its total current available authorization to $200 million.
The shares will be repurchased over the next 12 months based on market conditions, AOL said.
At the same time, AOL's board authorized the company to enter into a five-year secured $250 million revolving credit facility with a lending group led by JP Morgan Chase Bank NA. AOL said it plans to use borrowings for general corporate purposes.
Karen Dykstra, AOL's executive vice president and CFO, said the move boosts the company's capital structure and marks another step forward in its financial progress.
AOL shares rose $1.32, or 4 percent, to $37.77 in premarket trading.