The Brink’s Company (BCO) Took Up The Accelerated Share Repurchase Plan Again

The Brink’s Company (BCO) stock’s price surged 7.44% on Friday to close the day at $45.32 from a previous closing price of $42.18. Company’s weekly performance stands at 12.40% while that for the month is -5.98%. Moreover it’s quarterly and half yearly performances are in green but yearly and year to date performances are in danger zone.

BCO is a leading company that focuses on providing services including payment solutions, route-based secure logistics and total cash management. The company, in order to repurchase $50 million of shares of its common stock, recently entered into an accelerated share repurchases (“ASR”) agreement with J.P. Morgan Chase Bank, N.A. 

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Earlier this year in February, the company announced an authorization of $250 million for repurchasing of shares which was later on suspended temporarily because of the uncertainties created by the pandemic. The company will now be executing the ASR under that previously authorized plan.

As per the terms of the repurchase agreement, the company will pay J.P. Morgan an amount of $50 million to get hold over nearly 850,000 shares. The price of shares to be repurchased will be based on the stock’s market prices. The shares so purchased will represent about 80% of the total Brink’s has been expecting repurchasing under the ASR agreement. Through the agreement, the company is also expecting receiving additional shares which will be representing the balance of 20% of the remaining shares. Brink’s is likely to be receiving those additional shares before November 3, 2020 with the ASR transaction likely to be completing by that date.

The exact number of shares Brink’s will be repurchasing depends upon the average of the daily volume-weighted prices of its common stock during the term of the transaction. That also subject to a discount and adjustments to fulfill the conditions imposed by the ASR agreement’s terms. The number of Brink’s fully diluted shares outstanding as of June 30, 2020 was approximately 51.0 million shares. The company was to fund the ASR with cash on hand.

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