Attached files
file | filename |
---|---|
8-K - VARIAN MEDICAL SYSTEMS INC | v195147_8k.htm |
Exhibit
99.1
FOR
INFORMATION CONTACT:
|
|
Spencer
Sias (650) 424-5782
|
|
Spencer.sias@varian.com
|
|
For
Immediate Release
|
Varian
Medical Systems Announces $225 Million Accelerated Stock Repurchase; Increases
its Revolving Credit Facility
PALO ALTO, Calif., August 24, 2010 –
Varian Medical Systems, Inc. (NYSE:VAR) today announced that it has
entered into an agreement with Bank of America N.A. to repurchase $225 million
of its common stock under an accelerated share repurchase
program. Concurrently, the company amended its revolving credit
facility with Bank of America N.A. to increase its borrowing capacity from $150
million to $225 million.
Under the
accelerated repurchase agreement, Varian will pay $225 million to Bank of
America N.A. and receive approximately 3.8 million shares, or 90% of the shares
to be repurchased based on the closing share price of the company’s common stock
on August 24, 2010. The total number of shares ultimately repurchased
under the agreement will be determined upon final settlement. Varian
will either receive additional shares of common stock or under certain
circumstances be required to remit a settlement amount payable at Varian’s
option in cash or common stock, based generally on the volume weighted average
share price of Varian’s common stock during the next four to six
months.
“Given
the strength of Varian’s balance sheet and the low interest rate environment, we
have an opportunity to return shareholder value through this program,” said Tim
Guertin, president and CEO of Varian Medical Systems. “This program
will be accretive to earnings going forward, but will have a minimal impact on
fiscal year 2010.”
These
shares will be acquired under both the remainder of the 5 million share
repurchase authorization approved by the company’s Board of Directors on
November 13, 2009, and the more recent 8 million share repurchase authorization
approved by the company’s Board of Directors on August 6, 2010. At
the conclusion of the accelerated share repurchase program, the company expects
that approximately 5 million shares will remain under the August
2010 authorization, depending on the company’s stock price during the
accelerated repurchase program. Shares purchased under the
accelerated share repurchase program will be retired.
The
repurchase will be financed partially from cash on hand and partially with
borrowings from the company’s amended revolving credit facility.
# # #
Varian
Medical Systems Announces $225 Million Accelerated Stock
Repurchase
|
Page 2
|
As of the
end of the third quarter of its fiscal year 2010, the company had 124.5 million
fully diluted shares outstanding. Since initiating share repurchases
at the end of fiscal year 2001, the company has spent $1.8 billion to repurchase
43 million shares of common stock at an average price of $41.41 per
share.
Varian
Medical Systems, Inc., of Palo Alto, California, is the world's leading
manufacturer of medical devices and software for treating cancer and other
medical conditions with radiotherapy, radiosurgery, proton therapy, and
brachytherapy. The company supplies informatics software for managing
comprehensive cancer clinics, radiotherapy centers and medical oncology
practices. Varian is a premier supplier of tubes and digital detectors for X-ray
imaging in medical, scientific, and industrial applications and also supplies
X-ray imaging products for cargo screening and industrial inspection. Varian
Medical Systems employs approximately 5,200 people who are located at
manufacturing sites in North America, Europe, and China and approximately 70
sales and support offices around the world. For more information,
visit http://www.varian.com.
Forward-Looking
Statements
Except
for historical information, this news release contains forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Statements concerning future financial results and any
statements using the terms “expect,” “will,” “believe,” “estimate,” or
similar statements, are forward-looking statements that involve risks and
uncertainties that could cause the company’s actual results to differ
materially from those anticipated. Such risks and uncertainties include
the volume-weighted average share price through expected completion of the
repurchase agreement, the actual completion date of the repurchase
agreement, the final number of shares repurchased, the aggregate cost to
the company, whether the company elects to satisfy any settlement payment
in cash or in stock, and the company’s ability to generate cash flow, and
the other risks listed from time to time in the company’s filings with the
Securities and Exchange Commission, which by this reference are
incorporated herein. The company assumes no obligation to update or revise
the forward-looking statements in this release because of new information,
future events, or otherwise.
|