LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced that its Board of Directors, at a regularly scheduled meeting, has authorized a new stock repurchase program that will allow for repurchases of up to $150 million of its common stock over the next 18 months. Under the Company's previously announced stock repurchase program, which will continue until February 2011, the Company has previously said that, through June 30, 2010, it has repurchased approximately $45 million of common stock. Since then the Company has continued to make purchases under its existing repurchase program. In accordance with its past practice, the Company will provide an update regarding the additional purchases made under its existing repurchase program and any purchases made pursuant to the new program announced today when it reports its results of operations for the third quarter 2010.
Under the new stock repurchase program announced today, the Company may repurchase its common stock from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions and other considerations. The Company's repurchases may be executed using open market purchases, privately negotiated transactions, accelerated share repurchase programs or other transactions. The Company intends to fund repurchases under the new stock repurchase program from cash on hand, available borrowings or proceeds from potential debt or other capital markets transactions.
In connection with the new stock repurchase program, the Company intends to enter into a 10b5-1 plan, which will allow for repurchases of up to $115 million. The Company previously has utilized a 10b5-1 plan, which expired pursuant to its terms in May 2010. Rule 10b5-1, adopted by the Securities and Exchange Commission, allows an issuer, such as the Company, that is not in possession of material, non-public information to establish a pre-arranged plan for future repurchases of its stock. These plans enable issuers to repurchase stock during so-called "blackout" periods or at other times when it would otherwise be restricted from doing so. In accordance with Rule 10b5-1, a third party, such as a broker or bank, will execute the plan in accordance with its terms and without further involvement of the issuer. Any repurchases under the Company's 10b5-1 plan will be made during the period from September 22, 2010, until November 2, 2010, at purchase prices and amounts which will be established in the plan. Because the repurchases under the 10b5-1 plan are subject to certain pricing parameters, there is no guarantee as to the exact number of shares, if any, that will be repurchased under the plan.
The Company also announced that it is in the process of seeking a technical amendment to its senior credit facility which will facilitate debt securities issuances.