Spirit Realty Capital, Inc (New)(NYSE:SRC) reported that its Board has approved a new stock repurchase plan for up to $250 million of its common stock to be executed within 18 months from the authorization date.
Jackson Hsieh, the CEO and President of Spirit, reported that having rebought $200 million of company’s common stock so far in this year, they are delighted that their Board has approved a new $250 million share repurchase plan, which reflects the strength of their commitment to overall value creation. To the extent they perform any repurchases under the program, they will perform so on a leverage neutral basis by the close of 2017.
In addition, the company continues to follow best shareholder-friendly corporate governance. The management consider that amending their bylaws to lower the stockholder vote needed to repeal or change the bylaws and to follow new bylaws provide their shareholders a greater voice as they continue to progress with their plans.
The stock repurchase plan does not obligate the firm to buy any particular quantity of common stock and may be modified, suspended, discontinued or extended at any time at the firm’s discretion. Earlier in this month, Spirit Board restated and amended the bylaws of the firm to lessen the stockholder vote needed to repeal or alter any provision of the bylaws and to follow new bylaws from the favorable vote of two-thirds of the total votes permitted to be cast on the instance to the affirmative vote of a majority of the total votes permitted to be cast on the respective matter.
As per the amendment, the Board will retain the power to adopt, repeal or alter any provision of the bylaws and to formulate new bylaws, co-extensive with the privilege of the stockholders of the firm. Spirit reported that the repurchases may be done in open market deals, in privately negotiated deals or otherwise, from time to time, in accordance with the set guidelines.