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Rob Curtis reports at Gear Scout that the Remington Outdoor Group (formally known as Freedom Group International) have borrowed $200 million from existing lenders and will use $175 million of that to buy back shares from existing share holders. Remington said …
I am pleased to report that on Thursday, December 12th, the Remington Outdoor Company (ROC), formerly known as Freedom Group (FGI), raised $175 million of add-on, term loan financing from our existing lenders.
The $175 million loan proceeds will be used to repurchase $150 million of shares from exiting investors, with the remaining $25 million in cash being placed on ROC’s balance sheet, which will be used to grow our business with capital equipment, facility and acquisition investments.

More: Remington Outdoor Group Buys Back $175m Shares - The Firearm Blog


 

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Interesting...looks like they have a positive long term view.

Companies generally buy back shares when they see themselves as undervalued, generally use cash reserves to purchase but their approach with the rates on long term debt being so low. Could also be a good move because they can always re-issue shares to pay off the loan as needed.
 

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Interesting...looks like they have a positive long term view.

Companies generally buy back shares when they see themselves as undervalued, generally use cash reserves to purchase but their approach with the rates on long term debt being so low. Could also be a good move because they can always re-issue shares to pay off the loan as needed.
Stated like a man who truly understands the world of high finance.:?:
 
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