by Rob Keys
Posted 5/5/2010 09:22 am
Updated 2 years ago
J.B. Hunt Transport Services Inc. announced Tuesday an agreement to repurchase about $100 million of its outstanding common stock in a privately negotiated accelerated stock repurchase transaction with Goldman, Sachs & Co.
J.B. Hunt (Nasdaq: JBHT), according to a company news release, will use cash on hand and available borrowings for the transaction expected to begin Wednesday. It is expected to reduce J.B. Hunt's outstanding common stock by about 2.7 million shares, including about 2.4 million shares at the onset of the transaction.
The shares are subject to a market price adjustment provision that could require a settlement to be made by the company, or to the company, based generally on the volume weighted average trading price of the J.B. Hunt's common stock over an agreed upon period of time.
The repurchase is being made under the terms of the J.B. Hunt's share repurchase program, as authorized by its board of directors and announced on April 28. That's when J.B. Hunt said its board had approved the repurchase of up to $500 million of its common stock.