P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (the “Company”) today announced the commencement of a modified “Dutch auction” tender offer to purchase up to 550,000 shares, or about 2.5%, of its outstanding common stock at a price of not less than $15.50 and not more than $18.00 per share. The tender offer will expire at 5:00 p.m., Eastern Time, on May 22, 2024, unless extended or withdrawn. The Company anticipates paying for the shares tendered in the offer from its available cash and cash equivalents but may utilize funds borrowed under its existing line of credit. The Board of Directors determined that it is in the Company’s best interest to repurchase shares at this time given the Company’s financial condition and stock price.
A modified “Dutch auction” tender offer allows stockholders to indicate how many shares and at what price(s) they wish to tender their shares within the specified price range. Based on the number of shares tendered and the prices specified by the tendering stockholders, the Company will determine the lowest price per share within the range that will allow it to purchase up to 550,000 shares of its common stock, or a lower amount depending on the number of shares properly tendered and not properly withdrawn. Stockholders whose shares are purchased in the offer will receive the determined purchase price per share in cash, without interest, after the expiration of the offer period, subject to the conditions of the tender offer, including the provisions relating to proration. All shares tendered at prices higher than the purchase price will not be purchased and will be promptly returned to stockholders. The tender offer is not conditioned upon any minimum number of shares being tendered; however, the tender offer is subject to a number of other terms and conditions. Specific instructions and an explanation of the terms and conditions of the tender offer are contained in the Offer to Purchase and related materials that are being mailed to stockholders.
The Company has retained Computershare Trust Company, N.A., together with its parent company, Computershare, Inc., as the depositary for the tender offer and Georgeson LLC as the information agent.
Copies of the Offer to Purchase, the related Letter of Transmittal and the Notice of Guaranteed Delivery are being mailed to the Company’s stockholders. Additional copies of the Offer to Purchase, the related Letter of Transmittal or the Notice of Guaranteed Delivery may be obtained at the Company’s expense from the information agent at (866) 548-4527 (toll free). Questions regarding the tender offer should be directed to the information agent at (866) 548-4527 (toll free).
P.A.M. Transportation Services, Inc. is a holding company that owns subsidiaries engaged in providing truckload dry van carrier transporting general commodities throughout the continental United States, as well as in the Canadian provinces of Ontario and Quebec. The Company’s consolidated operating subsidiaries also provide transportation services in Mexico through its gateways in Laredo and El Paso, Texas, under agreements with Mexican carriers.