HOUSTON, July 11, 2014 /PRNewswire/ -- Tesco Corporation (the "Company") (NASDAQ: TESO) announced on May 6, 2014 that its Board of Directors had authorized the repurchase of as much as USD $100 million of the Company's common shares over a two year period. The repurchase of the common shares shall be conducted as a normal course issuer bid ("NCIB"). In the first tranche of the program, the Board has authorized the purchase for cancellation of up to 501,317 issued and outstanding common shares ("Shares"), representing approximately 1.25% of the 40,105,423 Shares in the public float as of April 30, 2014, through the facilities of the Nasdaq Stock Market ("NASDAQ"). The Company's Board of Directors shall authorize additional tranches of repurchases on a quarterly basis subject to the NCIB limitation that the Company may repurchase no more than 5% of its outstanding Shares within any 12-month period.
During any of the Company's blackout periods, purchases under the NCIB may continue under an automatic securities purchase plan between the Company and its broker which was put in place during the NCIB. The first tranche of the program's repurchases is scheduled to occur between July 5, 2014 and continue until August 1, 2014.
The Company and its Board of Directors believe that this NCIB is in the best interests of its shareholders and the repurchases made under this NCIB will be made, in part, to offset the dilutive effect of Shares expected to be issued upon the exercise of stock options under the Company's stock option plan.
The actual number of Shares purchased, the timing of purchases and the price at which the Shares are bought will depend on future market conditions and on potential alternative uses for the Company's cash resources. Any purchases will be subject to trading restrictions and will be made by the Company at the prevailing market price of the Shares at the time of purchase.
About Tesco Corporation
Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Corporation seeks to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and gas.
This news release contains forward-looking statements and forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and other United States and Canadian securities laws. The phrases "is subject to obtaining requisite regulatory approvals", "is expected to commence", "will expire", "may continue", "which will be put in place", "will be made", "expected to be issued", "believe", "will depend on future market conditions", "potential alternative uses of the Company's cash resources", "will be subject to trading restrictions", "will be made by the Company at the prevailing market price of the Shares at the time of purchase", and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements and forward-looking information are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and the expected effects of new business strategies, as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company's actual performance or achievements to differ materially from those expressed or implied by the forward-looking statements or forward-looking information. Such factors include, without limitation, the risks described in the Company's March 4, 2014 Form 10-K for the year ended December 31, 2013 (the "10-K"). Copies of the 10-K may be obtained at www.sedar.com or www.sec.gov. The Company recommends that readers review and consider all of these risk factors and notes that readers should not place undue reliance on any of the Company's forward-looking statements. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
For more information please contact:
Chris Boone – Chief Financial Officer