Masonite International Corp. Announces Execution of $100 Million Accelerated Share Repurchase AgreementMarch 4th, 2022 by Editor
Masonite International Corporation has announced that it has entered into an accelerated share repurchase agreement (ASR Agreement) with Morgan Stanley & Co. LLC to repurchase an aggregate of $100 million of the company’s outstanding common shares. The ASR Agreement is part of Masonite’s existing share repurchase program, which after giving effect to the share repurchase under the ASR Agreement, has approximately $256 million remaining available for future share repurchase activity.
Under the terms of the ASR Agreement, Masonite will receive an aggregate initial delivery of approximately 848 thousand common shares in exchange for a prepayment of $100 million. These shares will be retired by the company in the first quarter of 2022. The specific number of common shares that Masonite ultimately will repurchase pursuant to the ASR Agreement will be based generally on the daily volume-weighted average share price of Masonite common shares over the term of the ASR Agreement, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreement. Final settlement under the ASR Agreement, including any incremental share delivery, is expected to occur during or prior to the third quarter of 2022.