PAM Transportation Services Inc. of Tontitown said Monday that it will buy up to 200,000 shares, or about 3.4%, of its outstanding common stock in a modified "Dutch auction" tender offer.
The publicly traded (Nasdaq: PTSI) truckload dry van carrier said it purchase shares at a price of between $55 and $60 per share. Shares of the company were traded at about $56.50 per share on Tuesday.
The offer will expire at 5 p.m., Eastern Time, on June 11. The company said it would pay for the shares from its available cash and cash equivalents and from money borrowed under its existing line of credit.
"The Board of Directors determined that it is in the Company's best interest to repurchase shares at this time given P.A.M.'s financial condition and stock price," the company said in a news release.
A modified "Dutch auction" tender offer allows shareholders to indicate how many shares and at what price or prices they wish to tender their shares within the price range. Based on the number of shares tendered and the prices specified by shareholders, the company will determine the lowest price per share within the range that will allow it to purchase up to 200,000 shares of stock.