PAREXEL International Corporation (Nasdaq: PRXL) announced today that it has entered into an Accelerated Share Repurchase (ASR) agreement with Wells Fargo Bank, National Association to repurchase an aggregate of $200 million of the Company's common stock. The ASR is part of the Company's share repurchase program authorizing the repurchase of up to $200 million, as originally announced on September 14, 2015.
Under the ASR agreement, PAREXEL will receive approximately 2.3 million shares at the inception of the ASR. The total number of shares ultimately repurchased under the agreement will be determined upon final settlement, using prices based generally on the volume-weighted average price of the Company's common stock over a period of time not expected to exceed approximately six months.
The ASR will be funded through cash on hand, and/or existing credit facilities. As of June 30, 2015, the Company had cash and cash equivalents of approximately $207 million and availability under an existing line of credit of $250 million.
Josef von Rickenbach, Chairman and CEO of PAREXEL stated, "The accelerated share repurchase program represents an important step toward continuing to optimize the capital structure of the Company, and demonstrates our commitment to creating, enhancing, and returning value to shareholders."
The repurchased shares will be cancelled and returned to the status of authorized and unissued shares. As of June 30, 2015, PAREXEL had approximately 55.2 million common shares outstanding.
About PAREXEL International
PAREXEL International Corporation is a leading global biopharmaceutical services organization, providing a broad range of expertise-based contract research, consulting, medical communications, and technology solutions and services to the worldwide pharmaceutical, biotechnology and medical device industries. Committed to providing solutions that expedite time-to-market and peak-market penetration, PAREXEL has developed significant expertise across the development and commercialization continuum, from drug development and regulatory consulting to clinical pharmacology, clinical trials management, medical education and reimbursement. PAREXEL Informatics provides advanced technology solutions, including medical imaging, to facilitate the clinical development process. Headquartered near Boston, Massachusetts, PAREXEL has offices in 80 locations in 51 countries around the world, and had approximately 18,660 employees in the fourth quarter. For more information about PAREXEL International visit www.PAREXEL.com.
PAREXEL and PAREXEL Informatics are trademarks or registered trademarks of PAREXEL International Corporation or its affiliates.
This release contains "forward-looking" statements regarding future results and events, including, without limitation, statements regarding expected financial results, future growth and customer demand. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends," "appears," "estimates," "projects," "will," "would," "could," "should," "targets," and similar expressions are also intended to identify forward-looking statements. The forward-looking statements in this release involve a number of risks and uncertainties. The Company's actual future results may differ materially from the results discussed in the forward-looking statements contained in this release. Important factors that might cause such a difference include, but are not limited to, risks associated with: actual operating performance; actual expense savings and other operating improvements resulting from restructurings, including expense savings from the $30 – $45 million restructuring charge disclosed in the press release dated June 23, 2015; the loss, modification, or delay of contracts which would, among other things, adversely impact the Company's recognition of revenue included in backlog; the Company's dependence on certain industries and clients; the Company's ability to win new business, manage growth and costs, and attract and retain employees; the Company's ability to complete additional acquisitions, and to integrate newly acquired businesses including the acquisitions of ClinIntel Limited and Quantum Solutions India, or enter into new lines of business; the impact on the Company's business of government regulation of the drug, medical device and biotechnology industry; consolidation within the pharmaceutical industry and competition within the biopharmaceutical services industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of foreign currency exchange rate fluctuations and other international economic, political, and other risks. Such factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2015 as filed with the Securities and Exchange Commission on August 25, 2015, which "Risk Factors" discussion is incorporated by reference in this press release. The Company specifically disclaims any obligation to update these forward-looking statements in the future. These forward-looking statements should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this press release.