Symantec Launches $1.0 Bln Accelerated Share Repurchase Transaction

(RTTNews) - Symantec Corp. (SYMC) announced the next phase of its $5.5 billion capital return program by launching a $1.0 billion accelerated share repurchase or ASR transaction. The transaction is the first of what will be a series of buyback transactions totaling $2.3 billion that the Symantec Board is committed to executing between March 2016 and March 2017.

As previously announced in February 2016, and consistent with its commitment to returning significant capital to shareholders, the Symantec Board declared a special dividend of $4.00 per share, equaling about $2.7 billion, which is payable today, March 22nd, 2016, out of the earnings and profits of the company, to shareholders of record as of the close of business on March 8th, 2016.

Following payment of the $4.00 special dividend and completion of the $1.0 billion ASR transaction, the total amount of capital returned to shareholders under the $5.5 billion capital return program will equal $4.2 billion. This includes the $500 million ASR transaction that was completed in January 2016. Symantec will return the remaining $1.3 billion under the capital program through a series of share buyback transactions by the end of March 2017.

Today's announced ASR transaction and previously announced special dividend will be funded through a combination of cash on hand and proceeds from the $500 millionSilver Lake investment which closed on March 4th, 2016.

Michael Brown, Symantec president and CEO, said, "..... As we look ahead, we believe we are well-positioned to continue this momentum of improving operating margins and achieving our targeted cost savings of $400 million by the end of our fiscal year 2018."

In connection with these cost reduction efforts, Symantec has retained AlixPartners, a global business advisory firm, to assist the Company as it works to improve productivity and identify areas for cost savings.