Unifi, Inc.'s board of directors approved a new stock repurchase program to acquire up to $50 million of the company's common stock. The new repurchase program replaces the existing program, which authorized the repurchase of up to 3,333,333 shares of common stock, but which had been suspended since November 2003.
Under the new repurchase program, the Company is authorized to
repurchase shares at prevailing market prices, through open market
purchases or privately negotiated transactions at such times, manner and
prices as are determined by management, subject to market conditions,
applicable legal requirements, contractual obligations and other
factors. The Company expects that open market repurchases under the
repurchase program will be structured to comply with Rule 10b-18 under
the Securities Exchange Act of 1934, as amended, which sets certain
restrictions on the method, timing, price and volume of open market
Bill Jasper, Chairman and CEO of Unifi said,
"We are pleased to announce our continued commitment to maximizing
shareholder value through this new repurchase program. We will seek the
right opportunities to repurchase our stock, while maintaining ample
liquidity to support the operational needs and future growth
opportunities of the business."
Repurchases are expected to be
financed through cash from operations and borrowings under the Company's
revolving credit facility and are subject to applicable limitations and
requirements set forth in the Company's credit facility. The
repurchase program has no stated expiration or termination date. The
Company may discontinue repurchases at any time that management
determines additional purchases are not warranted. Under the repurchase
program, there is no time limit for repurchase, nor is there a minimum
number of shares intended to be repurchased or specific time frame in
which the Company intends to repurchase.
Unifi, Inc. is a
diversified producer and processor of multi-filament polyester and nylon
textured yarns and related raw materials.