Nov 9 2010
Covance Inc. (NYSE: CVD) announced today it entered into an accelerated share repurchase transaction with JPMorgan Chase Bank. Covance will repurchase shares of its common stock pursuant to the ASR Agreement as part of the $250 million share repurchase program that it announced on September 28, 2010.
Under the ASR Agreement, Covance will pay an aggregate of $250 million to JPMorgan from cash on hand and available liquidity, including funds borrowed by Covance under its newly-amended and restated credit agreement, for a number of shares that will be based generally on the volume-weighted average share price of Covance common stock over a valuation period in accordance with the terms of the transaction, subject to a cap provision that will establish a minimum number of repurchased shares. The valuation period will begin following the completion of a hedging period during which JPMorgan will purchase shares of Covance common stock to establish an initial hedge position in respect of its obligations to deliver shares under the ASR Agreement. The valuation period will continue until the program is completed, which may extend into the second quarter of 2011.
SOURCE Covance Inc.