The company said in a press release that the repurchases can be made over the next 12 months through the open market and could include derivative transactions. The program can also be suspended or canceled at any time.
The AOL board also announced its authorization to enter a five-year secured $250 million revolving credit facility. AOL's executive vice president and CFO, Karen Dykstra, said the line of credit would improve the company's capital structure and further AOL's financial progress.
Dykstra said in the release, "The oversubscribed credit facility underscores the debt market's receptiveness to AOL and significantly improves our financial flexibility to allocate capital to our strategic priorities, as well as continue our track record of returning capital to our shareholders."
The company said in the statement that the borrowed money would be used for "general corporate purposes."