The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) announced today that its Board of Directors has approved a share repurchase program, authorizing NASDAQ OMX to repurchase in the aggregate up to $300 million of its outstanding common stock. Purchases by NASDAQ OMX under this program may be made from time to time at prevailing market prices in open market purchases, privately-negotiated transactions, block purchase techniques or otherwise, as determined by NASDAQ OMX's management. The purchases will be funded from existing cash balances.
Further demonstrating its commitment to paying down existing debt during the fourth quarter of 2011, NASDAQ OMX intends to make a $109 million incremental debt prepayment in addition to the $11 million mandatory quarterly payment. Debt payments are expected to total approximately $120 million in the quarter.
Lee Shavel, NASDAQ OMX's Chief Financial Officer, commented, "This share repurchase authorization reflects our previously stated commitment to return excess capital to our shareholders on an ongoing basis while maintaining prudent leverage levels consistent with our investment grade status. We expect to continue to deliver strong returns to shareholders through both return of excess capital and growth through leverage of our core platform and services and successful ongoing investment in new initiatives."
This program does not obligate NASDAQ OMX to acquire any particular amount of common stock. The timing, frequency and amount of repurchase activity will depend on a variety of factors such as levels of cash generation from operations, cash requirements for investment inNASDAQ OMX's business, current stock price, market conditions and other factors. The share repurchase program may be suspended, modified or discontinued at any time.
