MTS Systems (MTSC) Enters $25M Accelerated Share Purchase Program Aug 19, 2010 09:13AM MTS Systems Corporation (Nasdaq: MTSC) today announced that it has entered into an agreement with JPMorgan Chase Bank to purchase $25 million of the Company's common stock in an accelerated share purchase program. On May 26, 2010, the MTS Board of Directors authorized up to $30 million of purchases under this program. As of today, the Company has approximately 1.5 million shares eligible for purchase. The transaction will be funded from cash on hand.
Under terms of the agreement, MTS will purchase approximately 0.9 million shares immediately from JPMorgan, which will borrow the shares sold to the Company, and will purchase shares in the open market to settle its borrowings. The Company's purchase is subject to, among other things, a financial adjustment based on the discounted volume-weighted average price of the shares subsequently purchased by JPMorgan over the course of the purchase period.