CA plans $500 million to $750 million of new bank debt for stock repurchase

By Sara Rosenberg

New York, Aug. 14 - CA Inc. plans to use $500 million to $750 million in new bank debt to help fund the repurchase of $1 billion in common stock, company officials said in a conference call Monday.

The company is anticipating repaying all of this bank debt within 18 months from now using free cash flow, officials added in the call.

The tender offer for the $1 billion stock repurchase is expected to launch this week.

This is the first phase of the company's $2 billion stock repurchase program, which is expected to be completed by the end of fiscal-year 2007. Various options to execute the second phase are still under consideration.

CA is an Islandia, N.Y., information technology management software company.

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