Tontitown-based carrier P.A.M. Transportation Services Inc. will purchase 272,405 shares of its stock for more than $10.07 million, according to a Tuesday (Aug. 31) news release. Meanwhile, the carrier’s share price rose to a 52-week high.
The stock purchase is the result of its modified Dutch auction tender offer that ended Aug. 26. It previously announced repurchasing up to 200,000 of its shares.
The stock will be purchased at $37 per share and represents about 2.4% of the company’s issued and outstanding shares. The total cost to the company excludes fees and expenses related to the offer. The company will pay for the shares accepted for purchase and return to tendering shareholders any shares tendered and not purchased.
The total amount of shares purchased reflects the company’s right to increase the tender offer by up to 2% of the company’s outstanding shares, according to a news release. The company expects to have about 11.18 million shares of stock outstanding after the tender offer is completed.
The company may purchase additional shares in the open market, but it cannot repurchase any shares until Sept. 13. The company may purchase additional shares depending on multiple factors, including the number of shares purchased in this tender offer, its business and financial performance and situation, the business and market conditions at the time and the share price.
Computershare Trust Company N.A. was the depositary for the tender offer. The company has retained Georgeson LLC as the information agent for the tender offer.
Shares of P.A.M. (NASDAQ: PTSI) closed Tuesday at $35.10, up $2.10, or 6.36%, after rising to a high of $36.01 in light trading Tuesday. In the past 52 weeks, the stock has ranged between $36.01 and $17.50.