Charlotte Russe to repurchase up to 4 million shares

By Lisa Kerner

Charlotte, N.C., Feb. 20 - Charlotte Russe Holding, Inc. will begin a modified Dutch auction tender offer for up to 4 million, or about 16%, of its common shares outstanding on or about Feb. 21.

The offer will remain open for at least 20 business days.

The purchase price for the shares will not be greater than $20 or less than $18 per share for a total purchase price of $80 million.

Charlotte Russe stock closed at $19.02 on Feb. 19.

The company plans to finance the share repurchase from its existing cash and cash equivalents balance of about $115 million.

"We believe that repurchasing our shares is an attractive and prudent use of the company's strong cash position allowing us to return value to our shareholders while maintaining flexibility to achieve our growth objectives," chief executive officer Mark Hoffman said in company news release.

The offer is not conditioned on outside financing or upon a minimum number of shares being tendered.

Charlotte Russe said its board of directors and executive officers are not participating in the tender offer.

Cowen and Co., LLC will act as the dealer manager, and MacKenzie Partners, Inc. is the information agent for the offer. The depositary will be Mellon Investor Services LLC.

Charlotte Russe is a mall-based specialty retailer based in San Diego.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.