Charles River Laboratories International Inc., a Wilmington provider of outsourced laboratory and research services, has begun an accelerated stock repurchase program to buy back $300 million worth of common stock. The buyback follows plans announced previously from the Charles River Labs board of directors for a $500 million common stock repurchase.
CRL (NYSE: CRL) noted in a press release today that it will finance the stock repurchase through cash on hand, as well as its amended and restated credit agreement for up to $750 million, consisting of a $400 million term loan and a $350 million revolving credit facility. The $750 million in credit will also support the company’s debt repayment.
Morgan Stanley & Co. Inc. will land 6 million shares of CRL common stock.
Last month, Charles River Labs pulled the plug on its plans to buy China’s WuXi PharmaTech (Cayman) Inc. for $1.6 billion, resulting in a $30 million breakout fee under terms of the original agreement.
In January, Charles River Labs announced plans to close a facility in Shrewsbury and lay off 300 people. The company made several strategic acquisitions in 2009 and also opened a 60,000 square-foot facility in Shanghai.