Blair Corporation intends to initiate stock tender buyback at $42 per share
26 May '05
3 min read
leading direct men's & women's apparel marketer blair corporation's board of directors announced its intention to initiate a stock tender buyback at $42 per share, for the purchase of approximately 4.4 million shares of blair's outstanding common stock for an aggregate price of approximately $185 million.
the directors have agreed not to participate in the tender. the tender will begin on or about august 1, 2005 and will be completed shortly thereafter.
for the purpose of this transaction, blair will obtain a credit facility of up to $200 million, which will be used in part, together with $40 million of blair's cash reserves, to fund the stock tender.
blair intends to pay down the portion of the credit facility used to finance the stock tender with the proceeds received from the previously announced sale of its credit portfolio to alliance data systems corp. the closing of the alliance data transaction remains on target for the fourth quarter of 2005.
as a result of this tender offer, two of blair's major shareholder groups, loeb partners corporation and santa monica opportunity fund l.p., have each separately agreed to enter into "standstill" agreements with blair and tender all of their shares. as part of the standstill agreements, the two groups have agreed they will not attempt to exercise any control over management of blair, they will vote in accordance with the board and management of blair, and they will not acquire any additionalshares of blair for a period of five years.
marketing@alchempro.com
