Asbury Automotive Expands Share Buyback; Amends Credit Facility - Quick Facts

(RTTNews) - Asbury Automotive Group Inc. (ABG) announced that its board has increased the size of the company's share repurchase authorization. With this increase, the company now has the authority to repurchase up to $200 million of the Company's common stock.

During the third quarter of 2014, the company repurchased $39.8 million of its common stock and from January 1, 2014 through September 30, 2014, the company repurchased $69.2 million of its common stock. As of September 30, 2014, the company had approximately 29.8 million shares outstanding.

As per the agreements governing its senior secured credit facilities and the indenture governing our 8.375% senior subordinated notes due 2020, the company's ability to repurchase shares of our common stock and pay cash dividends is limited by our required compliance with certain financial covenants and limitations.

The company also announced that it has entered into an amendment to its Credit Agreement that increased the Company's capacity to repurchase its common stock to $176.4 million.

Under the Indenture, as of September 30, 2014, its capacity to repurchase its common stock remains at $116.5 million. Accordingly, the limitations contained in the Indenture are now the most restrictive.