Resources Connection (RECN) Tender Offer with 10% Upside

Posted on October 20, 2016 by admin
  • Company: Resources Connection
  • Ticker: RECN
  • Market Cap: $500mm
  • Size of Action: $87mm
  • Type of Transaction: Dutch Auction Tender Offer
  • Current Price: $14.45
  • Tender Price: $13.50 - $16.00
  • Potential Gain (%): 11%
  • Expiration:  November 15, 2016
  • Tender Limit (Shares): 99
  • Max Investment ($): $1,430
  • Max Gain ($): ~$150
  • Sec Filing: Link
  • Summary: "Resources Connection offering to purchase up to 6,000,000 Shares in the Offer, which represents approximately 16.6% of the issued and outstanding Shares as of October 12, 2016. Upon the terms and subject to the conditions of the Offer, we will determine a single per Share price that we will pay for Shares properly tendered and not properly withdrawn from the Offer, taking into account the total number of Shares properly tendered and the prices specified by tendering stockholders. We will select the lowest purchase price, not greater than $16.00 per Share nor less than $13.50 per Share, that will allow us to purchase up to 6,000,000 Shares or a lower number of Shares depending on the number of Shares properly tendered and not properly withdrawn."
  • Source of Funds: Up to $50mm in cash with the remainder borrowed via a credit agreement.
  • Odd Lot Provision:  ...first, we will purchase all Shares properly tendered and not properly withdrawn by any odd lot holder, as described below, who: tenders all Shares owned beneficially or of record by such odd lot holder at a price at or below the Final Purchase Price...
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