Coty Increases Share Repurchase Program by $600 Million to Accommodate Planned Hedged Share Buyback Transaction of Additional 25 Million Shares
13 Novembre 2023 - 11:58PM
Business Wire
- Coty Share Repurchase Authorization Increased
by $600M to a Total of Approximately $1B
- Coty Starting to Hedge Stock Price for
Potential Buyback in FY26 Targeting Repurchase of 25M Shares
- Program Builds on Previously Executed Hedge
Transactions for Planned Buyback of 27M shares in 3Q FY24 and 23M
in FY25
- Coty to Continue its Disciplined Deleveraging
Trajectory of Approximately 2x Exiting CY25
Coty Inc. (NYSE: COTY) today announced that its Board of
Directors has increased its share repurchase program authorization
by an additional $600 million to a total availability of
approximately $1 billion. In connection with today’s announcement,
Coty is entering into total return swaps in respect of its Class A
Common Stock with several banks to hedge its potential exposure to
prevailing stock price trading levels over the applicable hedging
periods for a planned share buyback of approximately 25 million
shares in fiscal 2026.
These agreements are in addition to the Company’s previously
announced hedge transactions for planned buyback of 27 million
shares in 3Q FY24 and 23 million shares in FY25. Similar to the
initial hedge transactions executed in June and December 2022, any
total return swap settled in shares would be covered by the
Company’s share repurchase authorization.
The three hedge transactions are part of Coty's target to reduce
its diluted share count toward 800 million by FY26. Coty
anticipates continued strong free cash flow generation and to
achieve steady deleveraging with target leverage of approximately
3x exiting CY23, approximately 2.5x exiting CY24 and approximately
2x exiting CY25.
About Coty Inc.
Founded in Paris in 1904, Coty is one of the world’s largest
beauty companies with a portfolio of iconic brands across
fragrance, color cosmetics, and skin and body care. Coty serves
consumers around the world, selling prestige and mass market
products in more than 125 countries and territories. Coty and our
brands empower people to express themselves freely, creating their
own visions of beauty; and we are committed to protecting the
planet. Learn more at coty.com or on LinkedIn and Instagram.
Cautionary Note Regarding Forward-looking Statements
The statements contained in this press release include certain
“forward-looking statements” within the meaning of the securities
laws. These forward-looking statements reflect Coty’s current views
with respect to, among other things, its share repurchase plans,
share count targets, leverage targets, deleveraging plans, and free
cash flow expectations, as well as outlook, expected guidance,
trends and strategic information. These forward-looking statements
are generally identified by words or phrases, such as “anticipate,”
“are going to,” “estimate,” “plan,” “project,” “expect,” “believe,”
“intend,” “foresee,” “forecast,” “will,” “may,” “should,”
“outlook,” “continue,” “target,” “aim,” “potential” and similar
words or phrases. These statements are based on certain assumptions
and estimates that Coty considers reasonable and are not guarantees
of Coty’s future performance, but are subject to a number of risks
and uncertainties, many of which are beyond Coty’s control, which
could cause actual events or results to differ materially from such
statements, including the factors identified in “Risk Factors”
included in Coty’s Annual Report on Form 10-K for the fiscal year
ended June 30, 2023 and its subsequent quarterly reports on Form
10-Q. All forward-looking statements made in this press release are
qualified by these cautionary statements. These forward-looking
statements are made only as of the date of this press release, and
Coty does not undertake any obligation, other than as may be
required by law, to update or revise any forward-looking or
cautionary statements to reflect changes in assumptions, the
occurrence of events, unanticipated or otherwise, or changes in
future operating results over time or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231113355763/en/
Investor Relations Olga Levinzon +1 212 389-7733
olga_levinzon@cotyinc.com
Media Antonia Werther +31 621 394495
antonia_werther@cotyinc.com
Coty (NYSE:COTY)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Coty (NYSE:COTY)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024