Coty Inc. (NYSE:COTY) today announced it is entering into agreements with several banks to start hedging a planned share buyback program of approximately $200 million in calendar 2025. This program adds to the Company’s previously announced $200 million hedged buyback in CY24. Coty anticipates continued strong free cash flow generation and steady deleveraging progress in the coming years, continuing to target leverage towards 4x exiting CY22, towards 3x exiting CY23, and towards 2x CY25.
Similar to the initial program announced in June 2022, Coty has entered into total return swaps in respect of its Class A Common Stock with several banks to hedge its potential exposure at around prevailing stock price trading levels over the applicable hedging periods for a planned share buyback program of approximately $200 million. Any total return swap settled in shares would be covered by the Company’s existing share repurchase authorization.
