In a move to leverage its capital allocation strategy, Taylor Morrison (NYSE:TMHC) Home Corporation (NYSE:TMHC) has commenced a substantial share repurchase under an accelerated share repurchase agreement (ASR Agreement) with JPMorgan Chase (NYSE:JPM) Bank, National Association. This transaction, announced on Monday, is part of the homebuilder's ongoing $500 million share buyback program.
Per the terms of the ASR Agreement, Taylor Morrison will repurchase $50 million worth of its common stock. The initial exchange, scheduled for Thursday, will see the company acquire stocks approximately equal to 80% of the repurchase value, based on the closing price as of Monday.
The final number of shares to be repurchased will be calculated using the volume-weighted average stock price over the term of the ASR Agreement. This figure will also reflect a negotiated discount and may be adjusted according to the specific terms of the agreement. The final settlement is anticipated to be completed by the third quarter of 2024.
This strategic buyback underscores Taylor Morrison's commitment to returning value to its shareholders and reflects confidence in the company's financial strength. The execution of the ASR Agreement aligns with the company's broader capital management policy and its efforts to optimize shareholder returns.
This financial news is based on the latest SEC filing by Taylor Morrison Home Corporation.
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