LifeLock Reveals Additional Accelerated Share Buyback Transaction

LifeLock, Inc. LOCK revealed that it commenced an additional accelerated share repurchase (ASR) transaction with Bank of America, N.A. for about $48 million. According to the company, the terms of the agreement called for the buyback of its shares with the majority of the shares to be received immediately after the execution of its transactioin.

LifeLock said the final number of shares to be bought back would be based on the volume-weighted average share price of its common stock during the term of the ASR, minus a discount. The company added that the final settlement of the transactions was expected to take place on or before the end of the third quarter in the current year.

The company clarified the additional ASR transaction was executed as part of an authorization by its Board to buyback a maximum of $100 million of its common stock, which was announced on November 30, 2015, and in addition to the $50 million ASR transaction it struck with Bank of America, in February last.

LifeLock disclosed that it bought back about $1.9 million worth of shares from the open market since the announcement of the share repurchase program in November 2015. That was in addition to the stock repurchased through the February 2016 ASR. The company pointed out that once the two ASR transactions were completed the authorized repurchase of $100 million worth of common stock would also be completed.