As part of a O-I previously announced USD 500 million share repurchase program approved by O-I's Board of Directors in October 2014, O-I has entered into an agreement with J.P. Morgan Chase Bank NA to repurchase USD 100 million of O-I's common stock.
"Our strong cash flow generation in recent years continues to enhance our financial flexibility," said Steve Bramlage, chief financial officer. "After several years of devoting about 10% of free cash flow to anti-dilutive share repurchases, we are now prepared to direct a substantially higher proportion of our cash to our shareholders. This program is a concrete first step in that direction."
The specific number of shares O-I will ultimately repurchase under the ASR will be based on the daily volume weighted-average price of O-I's common stock during the term of the agreement.