AboveNet Inc., the high-bandwidth network provider based in White Plains, has authorized a share repurchase program of up to $200 million through Dec. 31, 2012.
Jeffrey Brodsky, non-executive chairman of AboveNet, in a press release said company directors “believe AboveNet”™s current market value does not fully reflect the intrinsic value of the business and the repurchase plan is one effective option to enhance shareholder value.”
The company expects to buy shares either in the open market or through privately negotiated transactions. AboveNet will solely determine the timing, number and value of shares repurchased, weighing factors that include market conditions, the trading price of the stock and other business considerations. The repurchase program can be suspended at any time without prior notice.
The stock purchases will be funded through available cash balances and drawdowns on the company”™s $250-million senior-secured revolving credit facility.
For the first three quarters of 2011, AboveNet reported revenue of  $350.9 million, a 16.3 percent increase from the same period of 2010.
The company”™s adjusted earnings before interest, taxes, depreciation and amortization for this year through Sept. 30 was $161.9 million, compared to $135.5 million for the same period in 2010.
