Covance Announces $250 Million Accelerated Share Repurchase
PRINCETON, N.J., Nov. 9, 2010 /PRNewswire via COMTEX/ -- 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.
Covance, with headquarters in Princeton, New Jersey, is one of the world's largest and most comprehensive drug development services companies with annual revenues greater than $1.8 billion, global operations in more than 30 countries, and more than 10,000 employees worldwide. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through its website at http://www.covance.com/.
Statements contained in this press release, which are not historical facts, such as statements about prospective earnings, savings, revenue, operations, revenue and earnings growth and other financial results are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements including the statements contained herein regarding anticipated trends in the Company's business are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, competitive factors, outsourcing trends in the pharmaceutical industry, levels of industry research and development spending, the Company's ability to continue to attract and retain qualified personnel, the fixed price nature of contracts or the loss of large contracts, risks associated with acquisitions and investments, the Company's ability to increase order volume, the pace of translation of orders into revenue in late-stage development services, fluctuations in currency exchange rates, and other factors described in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no duty to update any forward looking statement to conform the statement to actual results or changes in the Company's expectations.
SOURCE Covance Inc.