Varian Medical Systems Announces $250M Accelerated Stock Repurchase; Increases Its Revolving Credit Facility

Varian Medical Systems VAR today announced that it has entered into an agreement with Bank of America, N.A. to repurchase $250 million of its common stock under an accelerated share repurchase program. Concurrently, the company amended its revolving credit facility with Bank of America, N.A. to increase its borrowing capacity from $225 million to $300 million. Under the accelerated repurchase agreement, Varian will pay $250 million to Bank of America N.A. and receive approximately 3.8 million shares, or 85 percent of the shares to be repurchased based on the closing share price of the company's common stock on August 24, 2011. The total number of shares ultimately repurchased under the agreement will be determined upon final settlement. Varian will either receive additional shares of common stock or under certain circumstances be required to remit a settlement amount payable at Varian's option in cash or common stock, based generally on the volume weighted average share price of Varian's common stock during the next three to six months.