Commerce Bancshares Inc. on Aug. 7 entered into an accelerated share repurchase agreement with Morgan Stanley & Co. LLC to purchase $150 million of its outstanding common stock.
Approximately 75% of the shares to be repurchased under the agreement will be received by Commerce Bancshares at the agreement's inception. Additional shares are expected to be delivered to the Kansas City, Mo.-based company at the end of the term of the agreement.
The accelerated share repurchase program is set to end in December, but it may conclude earlier at Morgan Stanley's option.
All of the shares acquired by the company under the agreement will be placed into its treasury.
The agreement is part of the company's stock buyback program, which still has almost 5 million remaining shares approved for purchase, according to a Form 8-K filed Aug. 9.