The board of directors of LED chip, lamp and lighting maker Cree Inc of Durham, NC, USA has approved an increase in the firm’s stock repurchase program, such that it is now authorized to repurchase shares of its common stock with an aggregate purchase price up to $300m spanning from 20 June 2013 through to the new expiration of the program on 28 June 2015.
Cree recently repurchased 2.1 million shares of its common stock under the program at an average price of $47.11 per share (an aggregate value of $99.6m). There is hence $200.4m in aggregate purchase price value remaining in the stock repurchase program.
The repurchase program can be implemented through open market or privately negotiated transactions at the discretion of management. The firm will continue to determine the time and extent of any repurchases based on its evaluation of market conditions and other factors.
The board has also authorized Cree to secure a working capital line of credit facility of up to $150m, which will provide the firm with short-term flexibility to optimize its net investment return on its cash and investments while funding its general business needs.
