Azek Announces $50M Share Repurchase Deal

By Tamara Parker • Wednesday, August 14 07:56 • Permanent Link

The Azek Company Inc. (NYSE: AZEK) has announced an accelerated share repurchase agreement (ASR) with JPMorgan Chase Bank, National Association to repurchase $50 million of the company's Class A common stock. The company is funding the share repurchases under the ASR with cash on hand.

Under the terms of the ASR, the company will receive an initial delivery of approximately 1.0 million shares of Class A common stock from JPMorgan, with the final settlement scheduled to occur no later than November 2024.

The final number of shares to be repurchased under the ASR will be based generally on the average of Azek's daily volume-weighted average price per share of Class A common stock during a repurchase period, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR.

At settlement, JPMorgan may be required to deliver additional shares of Class A common stock to the company, or the company may be required either to make cash payments or deliver shares of Class A common stock to JPMorgan, at the company's election.

The ASR agreement contains customary provisions for agreements of this type, including provisions for adjustments to the transaction terms, the circumstances under which the ASR agreement may be accelerated, extended, or terminated, and various representations and warranties made by the parties to one another.

The Azek Company Inc. is the industry-leading designer and manufacturer of beautiful, low maintenance, and environmentally sustainable outdoor living products, including Timbertech® decking and railing, Versatex® and Azek® trim, and Struxure® pergolas. The company operates manufacturing and recycling facilities in Ohio, Pennsylvania, Idaho, Georgia, Nevada, New Jersey, Michigan, Minnesota, and Texas.

The company has recently been named one of America's climate leaders by USA Today, a top workplace by the Chicago Tribune and U.S. News and World Report, and a winner of the 2024 Real Leaders® Impact Awards. Following these announcements, the company's shares moved 4.4%, and are now trading at a price of $40.0. Check out the company's full 8-K submission here.

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