TRW Automotive (NYSE:TRW) announced on Monday that it plans to repurchase as much as $1 billion worth of stock, sending its shares sharply higher.
Shares of the supplier of automotive components have risen about 50% since late last year, Reuters noted. TRW Automotive shares rose more about 9% in Monday morning trading.
Company officials said the share buyback would take about two years to complete and would commence during the final quarter of this year. TRW also announced that it had recently increased its revolving credit facility to $1.4 billion, up from a previous $1 billion, through refinancing.
The company said it had not yet drawn any loans on the credit facility.