Under the terms of the ASR executed today, Benchmark’s outstanding common stock will be reduced by approximately 1.6 million shares, including approximately 1.3 million shares at the onset of the transaction. The ASR transaction structure includes a market price adjustment at the conclusion, based generally on the volume-weighted average trading price of Benchmark’s shares during the ASR transaction less a discount, which may require a settlement by or to Benchmark.
The Board of Directors has also authorized the initiation of a quarterly dividend of $0.15 per share with the first payment on April 11, 2018, to shareholders of record at the close of business on March 29, 2018.
Additionally, Benchmark has a $230 million Credit Facility that matures in November 2020. To further enhance its strong capital structure, Benchmark is considering opportunities to both lower the cost and lengthen the maturity of its debt structure, as well as to reduce overall leverage with existing cash.
“Benchmark’s management team and board of directors firmly believe in the long-term growth prospects of the company and remain committed to a balanced approach to capital allocation,” said Paul Tufano, CEO and President. “Given our strong cash position and recent tax reform, we believe we have the financial strength and liquidity to invest in future organic and inorganic growth, while returning value to shareholders through a combination of share repurchases and the return of cash through quarterly dividends.”