Thor Industries has paid in full the outstanding balance on its revolving credit facility. This facility was initiated in association with the funding of the June 2016 acquisition of Jayco. The $500 million facility remains available for future borrowings by the company through the facility maturity date of June 30, 2021.
Thor next announced that its board of directors has authorized the repurchase of up to $250 million of the company’s common stock over the next two years on the open market or in privately negotiated transactions in accordance with applicable securities laws. The repurchases, if made, will occur from time to time depending on market conditions and other factors.
“The Jayco acquisition has been a great success, delivering significant accretive value to our organization and shareholders,” said Bob Martin, Thor president and CEO. “Our execution, combined with strong earnings and cash flows following the acquisition, allowed us to pay off the debt in just two years. Further, the RV industry continues to benefit from solid economic fundamentals, as well as favorable demographic trends and lifestyle changes that are contributing to this growing marketplace. These positive factors support our belief that new consumers will continue to embrace the RV way of life and provide a pathway to continued long-term growth.
“Given the elimination of our debt, our healthy balance sheet, debt availability and historically strong cash flow, we now plan to embark on the next phase of our capital allocation strategy,” continued Martin, “targeting acquisitions with a strong marketplace position, successful operations and strong management, which will be accretive to earnings and an overall strategic fit with Thor Industries.”
The newly announced share repurchase authorization does not obligate Thor to repurchase any dollar amount or number of shares of common stock. This authorization is in effect until June 19, 2020, and may be suspended or discontinued at any time.