Franklin-based Tivity Health plans to buy back $100 million of its shares as leadership works to implement the fitness and holistic health company’s digital strategy.
The share repurchase program signifies a stamp of approval for company leadership from its board of directors as they work to deliver a new member engagement platform that integrates data analytics and artificial intelligence with Tivity’s fitness and nutrition portfolio.
It also demonstrates a healthier balance sheet for the company, according to Chairman Anthony Sanfilippo, after two years of being dragged down by their $1.3 billion purchase of weight loss brand Nutrisystem.
"We strongly believe that our free cash flow profile, growth prospects, and ability to deliver on our strategy to become the modern destination for healthy living represent an attractive investment opportunity,” President and CEO Richard Ashworth said in a press release. “Funds for the share repurchase program will be supported by our strong cash flow from operations, financial flexibility from our recent debt refinancing and strength of our asset base."
Shares of Tivity (Ticker: TVTY) rose nearly 6.3 percent to $24.00 on Monday afternoon.
CoreCivic offering another $100M in debt
Franklin-based prison operator CoreCivic has announced plans to offer $100 million more in unsecured notes, adding to the company’s $450 million in existing notes due in 2026 with an interest rate of 8.25 percent.
The company will use the proceeds for general corporate purposes, according to a press release, including paying off a portion of two separate security classes — $174 million of senior notes due in 2023 with a 4.625 percent interest rate and $250 million due in 2027 with a 4.75 percent interest rate.
With the transaction, CoreCivic will have $550 million in senior unsecured notes with a much higher interest rate due in 2026.
Shares of CoreCivic (Ticker: CXW) were up 4.2 percent Monday afternoon at $8.88. They reached a yearly high in mid-June, trading hands at $12.35.