SPX Reduces Debt by $450M During Q4; Completes Previously Announced Share Repurchase Plan
SPX Corporation (NYSE: SPW) today announced that it reduced its total debt by approximately $450 million during the fourth quarter. In addition, SPX recently completed the $350 million share repurchase plan it entered into in early 2012. These actions are consistent with the previously communicated capital allocation plans for the use of approximately $1.15 billion of proceeds from the sale of Service Solutions which was completed on December 3, 2012.
Debt ReductionAfter receiving the proceeds from the sale of Service Solutions, SPX reduced its total debt by approximately $450 million. This included the repayment of its $300 million Term Loan X and a $25 million partial repayment of its Term Loan A. SPX ended 2012 with approximately $1.7 billion of total debt and $700 million of net debt. The company now has no significant debt repayment obligations until Q4 2014.
Share Repurchase PlanIn the first quarter of 2012, SPX entered into a 10b5-1 share repurchase plan to facilitate the repurchase of $350 million of its stock. Phase I of this share repurchase plan was completed in Q2 2012 and totaled $75