MONTRÉAL, March 2, 2020 - Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today announced that its board of directors authorized the repurchase of up to 15% of the company's common stock for aggregate consideration of up to $100 million. Repurchase transactions will be funded using the company's sources of liquidity.
"Having recently exhausted our previous repurchase program, it is appropriate to introduce a new program to be ready to act opportunistically to return capital to shareholders when conditions are right," said Yves Laflamme, president and chief executive officer. "We believe that proper capital allocation is a top priority and that it must be done in a disciplined manner. Accordingly, we intend to strike a balance between value-creating opportunities such as high-return projects with opportunities to return excess capital to shareholders."
Under the new share repurchase program, the company is authorized to repurchase from time to time shares of its outstanding common stock on the open market or in privately negotiated transactions in the United States. The timing and amount of stock repurchases will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. The share repurchase program may be suspended, modified or discontinued at any time, and the company has no obligation to repurchase any amount of its common stock under the program. The repurchase program has no set expiration date. The company intends to make all repurchases in compliance with applicable regulatory guidelines and to administer the plan in accordance with applicable laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.
Cautionary Statements Regarding Forward-looking Information
Statements in this press release that are not reported financial results or other historical information of Resolute Forest Products Inc. and its subsidiaries (collectively, the "company," "we," "our," or "us") are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to the company's intention to repurchase shares of its common stock from time to time under its stock repurchase program and the source of funding therefor. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," "anticipate," "attempt," "project," "intend" and other terms with similar meaning indicating possible future events or potential impact on the company's business or its shareholders.
The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, among other things, the market price of the company's stock prevailing from time to time, the nature of other investment opportunities presented to the company, the company's financial performance and its cash flows from operations, general economic conditions, which could adversely affect the company's results of operations and cash flows. Additional information regarding factors that may cause actual results to differ materially from these forward-looking statements is available in the company's filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A – Risk Factors of the company's Annual Report on Form 10-K for the year ended December 31, 2018.
All forward-looking statements in this press release are expressly qualified by the cautionary statements set out or referred to above and in the company's other filings with the U.S. Securities and Exchange Commission and the Canadian securities regulatory authorities. The company disclaims any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries. The company owns or operates some 40 facilities, as well as power generation assets, in the United States and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.
Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices. Visit www.resolutefp.com for more information.
Source: Resolute Forest Products Inc.