United Parks & Resorts shareholders greenlight $500m buyback, amend Hill Path deal – Travel And Tour World

United Parks & Resorts Inc. (NYSE: PRKS), a prominent operator in the theme park and entertainment sector, announced that its shareholders decisively voted in favor of a $500 million share buyback plan and an amendment to its shareholder agreement with Hill Path Capital LP on Monday, March 25, 2024. During a Special Meeting of Stockholders convened on the same day, the attendees ratified a revision to the Stockholders Agreement initially made on February 27, 2024, which was originally signed with Hill Path Capital LP on May 27, 2019. Following the approval of this amendment, the shareholders also greenlit a new share repurchase initiative allowing the company to buy back up to $500 million of its common stock. This buyback is contingent on ensuring that the ownership percentage of Hill Path’s common stock does not reach or surpass 50% as a result of the repurchase.

“We thank our stockholders for their quick consideration and vote on this important matter,” said Marc Swanson, Chief Executive Officer of United Parks & Resorts Inc. “We are grateful to confirm the strong alignment between our board and our stockholders on our capital allocation priorities.”

The approval for both the amendment to the Stockholders Agreement and the Share Repurchase Program was overwhelming, with over 97% of votes in favor. These votes were cast by the majority of the company’s common stockholders eligible to vote, excluding shares owned by Hill Path and its affiliates.

The Share Repurchase Program permits United Parks & Resorts Inc. to buy back shares using various methods, such as open market transactions, private agreements, or other legal means, complying with federal securities laws, including Rule 10b5-1 trading plans and Rule 10b-18 of the Exchange Act. This program does not have an expiration date and can be halted or terminated at any moment. Decisions regarding the number of shares to purchase and the timing will be influenced by the company’s operational periods, financial standing, market and business conditions, legal constraints, debt obligations, and the potential for other investment opportunities.

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