AbbVie (ABBV) Enters $3.8B Accelerated Stock Buyback Agreement

AbbVie (NYSE: ABBV) disclosed the following on Thursday:

tem 8.01. Other Events

On June 1, 2016, AbbVie Inc. (“AbbVie”) entered into an accelerated share repurchase agreement (the “agreement”) with JPMorganChase (“JPMorgan”) to repurchase $3.8 billion (the “prepayment amount”) of AbbVie’s common stock. JPMorgan is expected to make an initial delivery of approximately 54.4 million shares of AbbVie’s common stock on June 2, 2016, which represents 90% of the prepayment amount divided by the closing price of AbbVie’s common stock on June 1, 2016.

At settlement of the agreement, JPMorgan may be required to deliver additional shares of AbbVie’s common stock to AbbVie or, under certain circumstances, AbbVie may be required to deliver shares of its common stock or may elect to make a cash payment to JPMorgan. The total number of shares of AbbVie’s common stock to be repurchased under the agreement will be based on the daily volume-weighted average price of AbbVie’s common stock during the term of the transaction, less a discount and subject to adjustment pursuant to the terms of the agreement. The final settlement of the transactions under the agreement is expected to occur before the end of the fourth quarter of 2016 and may be accelerated at the option of JPMorgan.

This agreement was entered into pursuant to AbbVie’s previously disclosed share repurchase authorization and in connection with AbbVie’s previously announced acquisition of StemCentrx, Inc., which was completed on June 1, 2016.

You May Also Be Interested In

• Abbvie (ABBV) PT Raised to $273 at Canaccord
• Tutor Perini prices $400M in senior notes to refinance debt
• Eldorado Gold elects nine directors at 2026 annual meeting