"On behalf of Jones Apparel Group, its Directors, employees and shareholders, I want to thank Howard Socol, his management team and associates at Barneys for their hard work and dedication as part of Jones. We wish them the best of luck in the future."
John T. McClain, Chief Financial Officer, added, "We believe that the ASR program is an effective way to execute a meaningful repurchase in a single transaction. This use of the net proceeds from the Barneys transaction will enhance present shareholder value, while at the same time adding greater strength to our balance sheet and providing the Company with the financial flexibility to strategically invest in growing our brands for the future benefit of our shareholders."
The final number of shares Jones is repurchasing under the terms of the ASR agreement and the timing of the final settlement will depend on prevailing market conditions and the volume weighted average price per share of Jones common stock over the term of the ASR program, within a maximum and minimum established during an initial valuation period and subject to adjustment if Jones were to enter into or announce certain types of transactions.
Goldman is expected to purchase Jones common stock in the open market in connection with the ASR program. As of September 5, 2007, before giving effect to the ASR transaction, Jones had 103.9 million shares of its common stock outstanding.
Jones has repurchased nearly 5.1 million shares of its common stock for approximately $95 million under the Company's current repurchase authorization, and approximately $205 million remains available for stock repurchases under this authorization, passed by the Board of Directors in February 2007.
The Board of Directors has authorized an additional $500 million of share repurchases, in order to facilitate the ASR program and other possible future repurchases. The Company will have approximately $305 million of stock repurchase authority after giving effect to the repurchases under the ASR program, assuming no adjustments to the initial shares repurchased by Jones become necessary.
During the term of the ASR program and for approximately two weeks after final settlement, Jones may only make repurchases of its common stock with the consent of Goldman.
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