Alliance Data Systems Corp. announced preliminary results from its modified Dutch auction tender offer. According to depositary Computershare Trust Company, N.A., about 13.49 million shares of Alliance Data common stock were properly tendered and not withdrawn at or below the purchase price of $162 per share.
A Dutch auction offer specifies a price range within which the shares will ultimately be purchased. Shareholders are invited to tender their stock, if they desire, at any price within the stated range.
Alliance Data expects to acquire approximately 5.068 million shares at $148 per share, for approximately $750 million, excluding fees and expenses relating to the tender offer. These shares represent approximately 9.92 percent of the shares outstanding as of Aug. 14, 2019. The preliminary proration factor for shares that Alliance Data will purchase pursuant to the tender offer is 83.64 percent.
The number of shares to be purchased and the purchase price are preliminary and subject to change. The final number of shares to be purchased and the final purchase price will be announced following the expiration of the guaranteed delivery period and the confirmation process completion.
J.P. Morgan Securities LLC, Mizuho Securities USA LLC and SunTrust Robinson Humphrey Inc. acted as dealer managers for the tender offer.