Bermuda-based Aspen Insurance Holdings Limited announced that it has entered into an Accelerated Share Repurchase (ASR) agreement with Goldman, Sachs & Co. to repurchase an aggregate of $150 million of Aspen’s ordinary shares under an accelerated share repurchase program.
Aspen also noted that it had repurchased approximately $47 million of its ordinary shares in the open market between the first of January and the 26th of February, 2013.
Aspen said that under the ASR agreement the company “will pay $150 million to Goldman in exchange for Aspen’s ordinary shares. Aspen expects the substantial majority of shares to be delivered on March 1, 2013.
“The total number of shares ultimately repurchased under the agreement will be determined based on a discount to the average daily volume-weighted average price of Aspen’s ordinary shares during the ASR period,” the bulletin continued. “At settlement, Goldman may be obligated to deliver additional shares to Aspen, or Aspen may be obligated to make a delivery of shares or a payment of cash to Goldman, at Aspen’s election. Aspen anticipates that all repurchases under the ASR will be completed no later than October 3, 2013.
“Based on Aspen’s closing share price on February 26, 2013, the ASR program and the completed open market share repurchases from January 1, 2013 together represent approximately 8 per cent of the Company’s current total market capitalization. Aspen will have approximately $335 million remaining under its current $500 million share repurchase program authorized by the Board of Directors and announced on February 7, 2013. The ordinary shares will be retired once repurchased.”
Source: Aspen Insurance Holdings Limited