(RTTNews) - TKO Group Holdings, Inc. (TKO), a sports and entertainment company, on Monday said it has entered into an accelerated share repurchase agreement to buy back $800 million of its Class A common stock.
The company also entered into a 10b5-1 trading plan to repurchase up to $174 million of shares and recently repurchased about $26 million in a privately negotiated transaction. All repurchases are part of its previously announced $2 billion share repurchase authorization.
Under the ASR agreement, the company will pay $800 million to Morgan Stanley & Co. LLC on September 16, and expects an initial delivery of 3,161,430 shares.
The final number of shares will be determined by the volume-weighted average price of the stock during the agreement, with completion expected in December.
The repurchases under the 10b5-1 plan will begin after the ASR concludes.
The company said the program will be funded with proceeds from its $1 billion first lien term loan borrowing, closed on September 15.
In the pre-market trading, TKO Group is 1.06% higher at $203.98 on the New York Stock Exchange.
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