Pasadena-Based Green Dot to Repurchase $50 Million of Class A Common Stock

Pasadena-based Green Dot Corporation has entered into a definitive agreement with Bank of America Merrill Lynch to purchase a total of $50 million of its Class A common stock under an accelerated stock repurchase transaction.

The agreement was signed in February, the company announced.

Under the agreement, Green Dot will receive an initial delivery of approximately 1.9 million shares. The final number of shares to be repurchased and the aggregate cost per share to Green Dot will be based on Green Dot’s volume-weighted average stock price during the term of the transaction, which is expected to be completed by November 2016.

Green Dot has now repurchased $100 million of its Class A common stock since September of 2015 when Green Dot’s regulators first approved the program. The Company is committed to executing the remaining $50 million under its $150 million repurchase authorization by 2017.

On Green Dot’s Q4 earnings call, management announced a Six-Step Plan to achieve $1.75 in EPS by 2017 and reiterated its commitment to spend an additional $50 million of its cash-on-hand this year as part of the Company’s previously announced $150 million share repurchase program.

Green Dot Corporation, along with its wholly owned subsidiary bank, Green Dot Bank, is a pro-consumer financial technology innovator with a mission to reinvent personal banking for the masses. Green Dot is headquartered in Pasadena.