Greensboro-based Lorillard, Inc. (NYSE: LO), the third largest manufacturer of cigarettes in the United States, announced today the declaration of a quarterly dividend on its common stock in the amount of $1.30 per share, payable on September 12, 2011 to stockholders of record as of September 1, 2011.
The Company's Board of Directors also approved a new share repurchase program, authorizing the Company to repurchase in the aggregate up to $750 million of its outstanding common stock. On August 9, 2011, the Company completed repurchases under its $1.4 billion share repurchase program, which was announced on August 20, 2010 and amended on May 19, 2011. Purchases by the Company under the new program may be made from time to time at prevailing market prices in open market purchases, privately negotiated transactions, block purchase techniques or otherwise, as determined by the Company's management. The purchases will be funded from existing cash balances.
"Last week's successful $750 million debt financing represented another significant step toward our objective of more effectively utilizing our balance sheet, a process that began more than two years ago," stated David H. Taylor, Executive Vice President, Finance and Planning, and Chief Financial Officer. "Today's announcement that the Board has authorized a new share repurchase program, combined with the declaration of the Company's regular quarterly dividend, reinforces the Company's intent to return cash to shareholders."
This program does not obligate the Company to acquire any particular amount of its common stock. The timing, frequency and amount of repurchase activity will depend on a variety of factors such as levels of cash generation from operations, cash requirements for investment in the Company's business, current stock price, market conditions and other factors. The share repurchase program may be suspended, modified or discontinued at any time and has no set expiration date.
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