February 21, 2008
Charlotte Russe Holding Inc announced its intent to commence a modified "Dutch Auction" tender offer for up to 4 million common shares or approximately 16% of its common shares outstanding. The Company's board of directors unanimously approved the tender offer.
The purchase price will not be greater than $20 or less than $18 per share for a maximum aggregate purchase price of $80 million. On February 19, 2008, the last full trading day prior to this announcement, the closing sale price on the NASDAQ Stock Market for the Company's common stock was $19.02.
The tender offer is expected to commence on or about February 21, 2008 and will remain open for at least 20 business days. The Company intends to finance this share repurchase from its existing cash and cash equivalents balance which was approximately $115 million as of December 29, 2007. The offer will be subject to terms and conditions to be described in an offer to purchase to be filed with the Securities and Exchange Commission on the date the tender offer is commenced.
Mark Hoffman, Chief Executive Officer, remarked: "We, along with our advisors, have evaluated our current cash position and capital structure. We believe that repurchasing our shares is an attractive and prudent use of the Company's strong cash position allowing us to return value to our shareholders while maintaining flexibility to achieve our growth objectives."
The repurchase will be made through a modified "Dutch Auction" tender offer in which shareholders will be given the opportunity to sell a portion or all of their shares to the Company and do so without incurring any brokerage fees or commissions.
Charlotte Russe Holding Inc
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