Pre-Paid Legal Receives Loan for Stock Purchase
Source: Newswire
"Pre-Paid Legal Services Receives Additional $10 Million Loan Commitment Proceeds to Be Used to Purchase Additional Treasury Stock
ADA, Okla., June 1 /CNW/ -- Pre-Paid Legal Services, Inc.
(NYSE: PPD) today announced that it has received from Bank of Oklahoma a
commitment for $10 million in additional financing, which will be available as
soon as a definitive agreement is finalized which is expected in the next few
days.
We expect to use proceeds from the financing to fund additional treasury
stock purchases. We currently have Board authorization to purchase
approximately 726,000 additional treasury shares.
The commitment provides for funding of $10 million to finance stock
repurchases with a single principal payment maturity date of December 1, 2006
and interest payable monthly at the 30 day LIBOR Rate plus three percent,
adjusted monthly. The definitive agreement will contain normal financial and
reporting covenants, similar to those in our previous lines of credit. The
loan is primarily secured by our rights to receive membership fees on a
portion of our memberships.
Since April 1999, we have purchased 10.3 million shares, totaling
$252.8 million, or an average cost per share of $24.61 per share. As a result
of this aggressive treasury stock purchase program, we have reduced shares
outstanding by 38% during this time."
Link:
Pre-Paid Legal Receives Loan for Stock Purchase
PRE PAID LEGAL SERVICES Business Opportunity Profile
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