Kroger (KR) late Wednesday said it has authorized a new $7.5 billion stock buyback, which includes an accelerated share repurchase program for around $5 billion of its shares.
The new authorization replaces the grocery company's existing $1 billion repurchase program, it said.
The company, which earlier Wednesday terminated its proposed merger with Albertson's (ACI), also said it was starting the process of redeeming $4.7 billion in senior notes it issued in August to help fund the now-scuttled deal.
Kroger will repay bondholders at 101% of the notes' face value, along with any accrued and unpaid interest up to the day prior to a special mandatory redemption date, it said. Additionally, the company will cancel the exchange program it created to redeem Albertson's outstanding debt.
Kroger said it remains committed to lower costs for shoppers and will use a portion of its financial resources to cut prices by an unspecified amount. The company and Albertson's previously had pledged to reduce prices at their stores in a bid to win support for their merger.
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