Premier, Inc. Enters into $200 Million Accelerated Share Repurchase Program

Premier, Inc. (NASDAQ: PINC), a prominent technology-driven healthcare improvement company, has recently disclosed an accelerated share repurchase program. The company officially entered into Issuer Forward Repurchase Transaction agreements with JPMorgan Chase Bank, National Association, to repurchase shares of its Class A common stock amounting to a total of $200 million.

The accelerated share repurchase transactions are being executed under the company’s $1.0 billion share repurchase authorization that was sanctioned by Premier’s Board of Directors in February 2024. According to the terms of the agreements, Premier made payments totaling $200 million to JPMorgan. By February 19, 2025, it is anticipated to receive initial deliveries of approximately 9,003,940 shares of common stock worth $160 million, based on the closing price of the stock on February 14, 2025.

Final adjustments in the number of shares to be repurchased will be defined upon completion of the transactions, depending on the volume-weighted average share price of the Common Stock during the term of each agreement. The Company aims to conclude these transactions no later than the first quarter of its 2026 fiscal year. Under certain conditions, adjustments in shares or payments may occur between Premier and JPMorgan. The funding for these repurchases is expected to be facilitated through borrowings under the company’s existing credit facility.

The agreements encompass customary terms for these transactions, including the mechanisms used for determining share numbers, delivery requirements, potential adjustments by JPMorgan, acknowledgments, representations, and termination conditions. A summary of these agreements is provided in Exhibits 10.1 and 10.2.

Additionally, on February 18, 2025, Premier issued a press release heralding the aforementioned ASR Transactions. The company emphasized that the information disclosed in this release and the attached Exhibit 99.1 should not be considered as filed for the Securities Exchange Act of 1934, and also, not for incorporation by reference in any securities-related filings by Premier.

It’s essential to note that forward-looking statements made by Premier involving the ASR program’s execution, the number of shares being repurchased, and anticipated benefits must be carefully considered. These statements are classified under the Private Securities Litigation Reform Act of 1995 and may be significantly impacted by various uncertainties and factors.

For further understanding of potential risks and uncertainties, readers are encouraged to review the Cautionary Note Regarding Forward-Looking Statements and the company’s periodic filings with the SEC. Investors and stakeholders are advised to evaluate these forward-looking statements prudently.

Premier remains committed to updating shareholders and the public regarding any developments related to these transactions in adherence to regulatory guidelines and timetables.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Premier’s 8K filing here.

Premier Company Profile

Premier, Inc, together with its subsidiaries, operates as a healthcare improvement company in the United States. It operates in two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with an access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and workforce solutions.