October 24, 2023
$10 billion ASR
Structure: Uncollared
Matthews South Role: Financial Advisor
Counterparties: Morgan Stanley / Citi / Goldman Sachs
Matthews South Role: Financial Advisor
Counterparties: Morgan Stanley / Citi / Goldman Sachs
$10 billion Accelerated Share Repurchase
Overview
- Matthews South advised RTX Corporation on their $10 billion ASR
- RTX Corporation started this ASR program immediately after 2023 Q3 Earnings and this transaction will upsize its previously announced capital return target from $33 – $35 billion to $36 – $37 billion through 2025
Pricing, Structuring, & Execution Advice
- Matthews South has a long-standing relationship with RTX, having previously advised United Technologies on its $6 billion ASR in 2015
- Matthews South guided the company in structuring the transaction to optimize for the large size and the pricing outcome
- Additionally, Matthews South assisted the company in designing a dynamic bidding process, which is different from standard competitive bidding
- During execution, Matthews South coordinated pricing and execution with the bank group
