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Plexus Plans Stock Repurchase |
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Written by Philip Buonpastore
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Tuesday, 26 February 2008 |
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NEENAH, WI
– Industry reports indicate that contract electronics maker Plexus Corporation said that its board has approved a financial recapitalization, in which it will
borrow $150 million to buy back up to $200 million of its common shares.
"Over
the last several months we have conducted a comprehensive review of our capital
structure, and believe that a moderate amount of debt at the current favorable
interest rates strikes the right balance for Plexus," said CFO Ginger
Jones in a statement.
The
company will pay $100 million to Morgan Stanley to buy back approximately 2.2
million shares, with expectation of buying back another $100 million shares on
the open market by the end of 2008.
Plexus
reported that it will fund the share repurchase with existing cash and a new long-term
debt of $150 million, saying that the recapitalization will add to 2008
earnings per share.
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