Dollar Tree Board Authorizes Up To $2 Bln. Share Buyback - Quick Facts

(RTTNews) - Dollar Tree, Inc. (DLTR), the operator of discount variety stores, said Tuesday its Board has authorized the repurchase of up to $2 billion of its common stock. This new program replaces the October 2011 share repurchase program.

"Our share repurchase program continues to represent an important part of our capital allocation strategy and an efficient and flexible way of returning value to shareholders," said CEO Bob Sasser.

In addition, the company entered into agreements with JPMorgan Chase Bank, National Association, to repurchase $1 billion of its common shares under a variable maturity accelerated share repurchase program, 50% of which is collared and 50% of which is uncollared.

Dollar Tree also completed a private placement to institutional investors of $750 million aggregate principal amount of Senior Notes.

The company said that $1 billion accelerated share repurchase will be financed by proceeds from the sale of these notes and $250 million of available cash. As of August 3, Dollar Tree had $250 million outstanding under its revolving line of credit and had $413.7 million in cash and cash equivalents.

Shares of Dollar Tree closed Tuesday at $55.83, down $0.03 or 0.05%, on a volume of 0.9 million shares on the Nasdaq. In after hours, the stock gained $1.52 or 2.72%.