Communications provider tw telecom on Monday announced that its board has authorized the company to buy back up to $300 million in shares.
The provider of Ethernet services and other communications solutions to businesses said the repurchase plan represents about 12 percent of its total shares outstanding as of Sept. 30 based on its closing price on Nov. 18. The company already has repurchased $100 million of shares since instituting an initiative in June 2010.
“Our decision to initiate this larger, multiyear share repurchase program reflects our confidence in our strong cash flow generation,” said Larissa Herda, tw telecom chairman, CEO and president.
Littleton, Colo.-based tw telecom also said it amended its undrawn revolving credit facility, increasing the allowable amount of restricted payments including share repurchases, dividends and repayments of debt from $50 million annually to $150 million.
The stock price at tw telecom opened today at $17.37 and was up 33 cents, or 1.9 percent, as of 1:11 ET. The price of the stock has ranged from a 52-week low of $15.42 to a 52-week high of $22.87.