Teradata Announces $250 Million Accelerated Share Repurchase Agreement

Rhea-AI Summary

Teradata Corporation (NYSE: TDC) has initiated a $250 million accelerated share repurchase (ASR) agreement with JPMorgan Chase Bank as part of its $1 billion share repurchase program. This move leaves approximately $913 million available for future repurchases. The company will initially receive around 3.9 million shares, approximately 80% of the expected total, based on a closing price of $50.89 on February 8, 2022. The ASR will be funded from cash on hand, aiming to enhance shareholder value.

Positive

• Initiation of $250 million accelerated share repurchase enhances shareholder value.
• Approximately $913 million remains available under the $1 billion share repurchase authorization.

Negative

• None.

SAN DIEGO--(BUSINESS WIRE)-- Teradata Corporation (NYSE: TDC) today announced that it has entered into an accelerated share repurchase agreement (“ASR”) with JPMorgan Chase Bank, N.A. (“JPM”) to repurchase $250.0 million of the Company’s common stock. The ASR was entered into as part of the Company’s previously announced $1.0 billion open market share repurchase authorization, under which approximately $913 million will remain available after giving effect to the ASR. The Company intends to fund the ASR from cash on hand.

Under the ASR, the Company will make a payment of $250.0 million to JPM and will receive an initial share delivery of approximately 3.9 million shares from JPM, representing approximately 80% of the expected share repurchases under the ASR, based on the closing price of the common stock of $50.89 on February 8, 2022. The final number of shares of common stock that will be delivered to the Company under the ASR will be based on the average of the daily volume-weighted average trading prices of the Company’s common stock during the term of the transaction, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR.

Note to Investors

This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “anticipate,” “continue,” “plan,” “estimate,” “believe,” “will,” “would,” “likely,” “intend,” “potential,” or similar expressions. Forward-looking statements in this release include the Company’s share repurchase plans. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including those relating to: constraints, volatility, or disruptions in the capital markets or other factors affecting the amount and timing of share repurchases; the Company’s ability to complete the ASR; the number of shares that will be delivered to the Company under the ASR; whether or not the Company will continue, and the timing of, any open market share repurchases; and other factors described from time to time in the Company’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as the Company’s annual report to stockholders. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Teradata

Teradata is the connected multi-cloud data platform for enterprise analytics company. Our enterprise analytics solve business challenges from start to scale. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. Learn more at Teradata.com.

The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.

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INVESTOR CONTACT

Christopher T. Lee

858-485-2523 office

christopher.lee@teradata.com

MEDIA CONTACT

Jennifer Donahue

858-485-3029 office

jennifer.donahue@teradata.com

Source: Teradata Corporation

FAQ

What is the accelerated share repurchase agreement by Teradata Corporation?

Teradata Corporation has entered into a $250 million accelerated share repurchase agreement with JPMorgan Chase Bank as part of a larger $1 billion share repurchase program.

How many shares will Teradata repurchase under the ASR?

Teradata will initially receive approximately 3.9 million shares, which is about 80% of the expected total repurchases based on the share price.

What is the purpose of Teradata's share repurchase program?

The share repurchase program aims to enhance shareholder value by returning capital to shareholders.

How will the ASR be funded?

The accelerated share repurchase will be funded using cash on hand.

What is the remaining amount available for repurchase after the ASR?

After the $250 million ASR, approximately $913 million remains available under the $1 billion share repurchase authorization.