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Insights

advice for businesses in dealing with the expanding coronavirus events

Navigating Share Repurchases in Volatile Markets

March 17, 2020

By Joyce Sophia Xu, Michael L. Zuppone, Diona Park, Michael Spafford, John Nowak, Daren F. Stanaway, Yariv Katz & Keith Pisani

The global outbreak of the 2019 Novel Coronavirus (“COVID-19”), together with the oil price war, have fueled the volatility and historical losses in the stock market. Despite this turmoil, a down market also could present opportunities for companies considering buying back their shares. Share repurchase strategies range from traditional open-market share repurchase programs to issuer puts on its own stock to accelerated stock repurchase programs (“ASRs”), which may include embedded floors or caps.