Nasdaq OMX Group (Nasdaq:NDAQ) announced today that its Board of Directors has approved a share repurchase program, authorizing Nasdaq OMX to repurchase in the aggregate up to $300 million of its outstanding common stock.
Purchases by NASDAQ OMX under this program may be made from time to time at prevailing market prices in open market purchases, privately-negotiated transactions, block purchase techniques or otherwise, as determined by NASDAQ OMX's management. The purchases will be funded from existing cash balances.
Further demonstrating its commitment to paying down existing debt, NASDAQ OMX also intends to prepay an additional $100 million in amortization payments on its term loan during 2010.
Bob Greifeld, NASDAQ OMX's Chief Executive Officer, commented, "We have successfully leveraged our platform to diversify our business and improve our cash flows, and are experiencing growth through our new initiatives and our core services. We remain committed to our investment grade status while also opting to use our cash-flow generative business to provide a return of capital to our shareholders."
This program does not obligate NASDAQ OMX to acquire any particular amount of common stock. The timing, frequency and amount of repurchase activity will depend on a variety of factors such as levels of cash generation from operations, cash requirements for investment in NASDAQ OMX's business, current stock price, market conditions and other factors. The share repurchase program may be suspended, modified or discontinued at any time.