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Dollar Tree Stores, Inc. Announces $100 Million Accelerated Share Repurchase
[ From
Business Wire
(press release) - San Francisco,CA,USA
Dollar Tree Stores, Inc. (NASDAQ:DLTR), the nation's leading operator of
single-price point dollar stores, today announced that after market close on
August 30, 2007 it entered into an agreement with Merrill Lynch International to
repurchase approximately $100 million of its common shares under an accelerated
share repurchase program. Dollar Tree will acquire these common shares under the
$500 million share repurchase program announced on November 21, 2006. Upon
completion of this transaction, the Company will have about $98 million
remaining in future authorized share repurchases. This is the Company’s third
accelerated share repurchase program since December 2006.
The specific number of shares to be repurchased is generally based on the volume
weighted average share price of the company’s common shares during the term of
the accelerated share repurchase program, subject to collar provisions that
establish the minimum and maximum price and number of shares to be repurchased
under the agreement.
Under the agreement, Dollar Tree will immediately pay $100 million. The Company
will initially receive approximately 1.6 million shares --based on a calculation
of approximately 70% of the top end of the collar-- and will receive the
additional shares by the end of an estimated 1 to 4.5 month period contemplated
to complete the transaction, depending on market conditions. All of the
repurchased shares will be retired. Prior to issuance of this press release, no
trading activity has occurred in the public market related to this accelerated
share repurchase program.
"We believe share repurchase, facilitated in part by accelerated share
repurchase programs, is an efficient use of capital that provides long term
benefit to our shareholders," said President and CEO Bob Sasser. “In late July
we completed our second accelerated program for $150 million, announced on March
29, 2007, that was subsequently followed by $75 million of open market purchases
completed in early August under a 10b-5-1 plan.”
Dollar Tree Stores operated 3,334 stores in 48 states as of August 4, 2007.
A WARNING ABOUT FORWARD-LOOKING STATEMENTS: This press release contains
"forward-looking statements" as that term is used in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements address future events,
developments or results and typically use words such as believe, anticipate,
expect, intend, plan or estimate. For example, our forward-looking statements
include statements regarding our intentions to repurchase stock, the method and
timing as well as the number of shares repurchased, related expenditures and the
benefits of such transaction. For a discussion of the risks, uncertainties and
assumptions that could affect our future events, developments or results, you
should carefully review the “Risk Factors,” "Business," and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations”
sections in our Annual Report on Form 10 - K filed April 4, 2007 and our
Quarterly Report on Form 10-Q filed June 14, 2007. In light of these risks and
uncertainties, the future events, developments or results described by our
forward-looking statements in this document could turn out to be materially and
adversely different from those we discuss or imply. We are not obligated to
release publicly any revisions to any forward-looking statements contained in
this press release to reflect events or circumstances occurring after the date
of this report and you should not expect us to do so.
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