JetBlue discloses $160 million accelerated stock repurchase deal

JetBlue Airways Corp. disclosed Friday an accelerated repurchase agreement (ASR) to buy back $160 million worth of its stock, as part of the $800 million share repurchase announced in September. Under terms of the ASR agreement, which was entered into with Morgan Stanley , JetBlue will initially receive 6.9 million shares based on the Nov. 21 closing price, and the total number of shares the air carrier will ultimately receive will be determined by the volume weighted average prices of the stock during the term of the ASR agreement. After completion, there will be $640 million remaining in JetBlue's share repurchase program. At the Nov. 21 closing price of $18.63, the ASR program could buy back 8.59 million shares, or about 3% of the shares outstanding. The stock, which was still inactive in premarket trading, has gained 16% year to date, while the NYSE Arca Airline Index has advanced 17% and the S&P 500 has climbed 24%.

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