By Lisa Beilfuss
Automatic Data Processing Inc. said Friday it would offer $2 billion in debt and increase the size of its share-repurchase program, a move to enhance its capital structure.
In a regulatory filing, the company said it would conduct one or more debt offerings and use the net proceeds for general corporate purposes.
Contingent upon the offering's completion, ADP said, its board has authorized the purchase of an additional 25 million shares of common stock. At Thursday's closing price of $78.83, a 25-million-share buyback would cost the company $1.95 billion.
The company has about 26 million shares remaining under the previous share-repurchase program. The additional buybacks will be completed within a 12- to 24-month time period following the completion of the debt offering, subject to market conditions, ADP said.
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