Valmont Industries Approves $500 Mln Share Repurchase Program - Quick Facts

(RTTNews) - Valmont Industries, Inc. (NYSE: VMI) announced that its Board of Directors has adopted a capital allocation philosophy.

Valmont also said it plans to manage its capital structure to maintain a Moody's debt rating of Baa2, and a Standard and Poor's BBB debt rating, with a lesser debt rating of Baa3 and BBB- being reserved for special opportunities.

The company said the capital allocation policy resulted in a decision to increase the dividend by 50% and to authorize a share repurchase program.

The Directors approved an increased quarterly cash dividend of 37.5 cents per share payable on July 15, 2014 to shareholders of record on June 27, 2014.

Also, the Directors authorized the company to purchase up to $500 million of its outstanding common stock from time to time over the next twelve months at prevailing market prices, through open market or privately-negotiated transactions.

The company said the purchases will be funded from available working capital and short-term borrowings and will be made subject to market and economic conditions. Valmont is not obligated to make any repurchases and may discontinue the program at any time.