The Company has had a similarly-sized program in place over the preceding twelve months that has now expired. Under this prior plan, the Company had opportunistically repurchased approximately $4 million dollars of stock.
Purchases by the Company under the new program would be made from time to time in the open market or in privately negotiated transactions in accordance with the requirements of applicable law. The timing and amount of any purchases will depend on share price, market conditions and other factors. The program does not require the Company to purchase any specific number of shares and may be suspended or discontinued at any time.
“This action by our Board, coupled with the recently announced dividend increase, underscores our commitment to return cash to shareholders as part of their total return and provides us with the flexibility to take action when we believe our share price is undervalued,” said John O’Donnell, CEO. “With ample borrowing capacity and cash flow generating capability, our financial position has never been stronger, and we continue to look for ways to invest that will perpetuate our record of delivering attractive returns to our shareholders.”
The stock repurchase program is expected to be funded using cash on hand or borrowings under the Company’s existing revolving credit facility. As of March 31, 2013, Neenah Paper had approximately 16 million shares of common stock outstanding.
Neenah is a leader in premium image and performance-based products, including filtration, specialized substrates used for tapes, labels and other products, and high-end printing papers.