Progressive Waste Solutions Ltd.‘s directors have authorized the repurchase of up to $300 million of the company’s stock.
The new repurchase plan, which runs through Dec. 31, 2014, is in addition to the amount remaining under Toronto-based Progressive’s existing normal course issuer bid (NCIB), which authorizes the repurchase of up to 4 million common shares between August 19, 2011, and August 18, 2012. As of December 16, Progressive had repurchased approximately 2.5 million common shares at a cost of $53.4 million under the NCIB, the company said in a news release.
Including the repurchase of one million common shares in the secondary offering of common shares held by TC Carting III, L.L.C., Progressive has repurchased in 2011 a total of approximately 3.5 million common shares, costing $76.9 million.
As of December 16, the company has 118.4 million common shares outstanding.
"An ongoing stock repurchase program is a key element of our long-term plan to deliver a balanced return to shareholders," said Joe Quarin, Progresssive president and chief operating officer. "We are committed to returning cash in the form of stock buybacks and the payment of dividends. At the same time, we will selectively deploy capital in strategic investments that will drive future growth and shareholder returns, while maintaining a strong balance sheet."
Progressive said future decisions on repurchases will be based on market conditions, share price and other factors. As of Dec. 20 its stock was trading at $19.48 a share.