According to company officials, the latest buy-back will be financed with cash on hand and borrowings under its revolving credit facility. The company also expects the latest buy-back to be completed by the end of this year.
The 48 million share buy-back, authorized by Realogy's board in August, came in the wake of the $1.4-billion sale of the company's Travelport unit by former parent Cendant Corp., which was reported by GlobeSt.com. "This stock repurchase program demonstrates our confidence in the long-term growth of the company and our strong free cash flow," Henry R. Silverman, Realogy's chairman/CEO said in a prepared statement in August. "We believe our shares are mispriced by the market, and the board felt that the best investment we can make with the Travelport proceeds is our own stock."
Realogy also issued a statement yesterday indicating that it expects its Q3 results "to be consistent with it most recent projections for full-year 2006, which were announced on Aug. 23, 2006 and reconfirmed on Sept. 27, 2006." A conference call on the Q3 results has been scheduled for Nov. 1, after the market closes, and it will be led by Silverman, vice chairman and president Richard A. Smith, and Anthony E. Hull, EVP, CFO and treasurer.
As reported by GlobeSt.com, Realogy agreed to buy the Chicago-based Oncor International. Financial terms were not disclosed, with company officials only releasing a statement saying, "the acquisition is not expected to have a material impact on Realogy's financial results."
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