Auto parts supplier Dana Holding (NYSE: DAN ) announced today it is expanding its share repurchase program to $1 billion, representing a $900 million increase over the $100 million bought back under the previous authorization. Shares will be bought back over the next two years.
Dana Holding President and CEO Roger J. Wood said: "This expanded program reflects confidence in the long-term prospects of our business and our commitment to delivering value to all of our shareholder. We continue to review our capital structure with the goal of best utilizing our strong balance sheet to maximize shareholder value." As of this writing, Dana shares are trading at $19.40.
The auto parts supplier anticipates having sufficient liquidity to support this initiative after refinancing its current U.S. revolving credit facility and establishing a new five-year, $500 million revolving credit facility. While the stock repurchase is subject to prevailing market conditions, Dana says it will continue to evaluate further credit market opportunities.
Headquartered in Maumee, Ohio, Dana Holding is a supplier of driveline, sealing, and thermal-management technologies that improve the efficiency and performance of passenger, commercial, and off-highway vehicles with both conventional and alternative-energy powertrains. It had revenues of $6.9 billion for the 12-month period ending March 31.