YETI Holdings , Inc. (NYSE:YETI) announced on Tuesday that it has entered into an accelerated share repurchase agreement (ASR) to buy back $100 million worth of its common stock. The outdoor products company will fund the repurchase with its available cash reserves.
The agreement, struck with Goldman Sachs & Co (NYSE:GS). LLC, stipulates an upfront payment of $100 million from YETI to the financial services firm on Thursday. In return, YETI anticipates an initial delivery of approximately 2 million shares of its common stock on the same day.
The final count of shares repurchased will hinge on the volume-weighted average price of YETI's stock during the term of the ASR, adjusted by a discount and other potential adjustments outlined in the agreement. Depending on the average stock price, either more shares may be delivered to YETI, or in some cases, YETI might need to provide additional shares or cash to Goldman Sachs.
The final settlement of the ASR is expected to occur in the second quarter of 2024, although it could conclude earlier under certain conditions specified in the agreement. This transaction is typical of accelerated share repurchases, with standard provisions for the determination of final share numbers, timing, adjustment mechanisms, and termination options.
It is noteworthy that Goldman Sachs and its affiliates have previously engaged and may continue to engage in investment or commercial banking transactions with YETI, from which they have received and may receive customary compensation.
This share repurchase is part of YETI's strategy to manage its capital and return value to its shareholders. The information reported here is based on a press release statement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.