CIX is buying back $100M in stock at a price between $13.64 and $15.28. The clearing price will be the lowest price that allows for $100M to be spent. The main pro is that investors might get a higher market price than the market for their tendered shares. BUT.....the offer will be pro-rated based on the number of shares tendered. Shareholders will NOT get all of their shares bought. There is no commission on the tender, either. CIX believes its shares are undervalued, and is willing to spend $100M in one shot to prove its points. Per-share earnings leverage increases with fewer shares outstanding. We do not like tendering to such deals, and with markets acting better than rates peaking, CIX will have strong leverage to improving capital markets.
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