Packaging Corporation of America Announces $100 Million Common Stock Repurchase Program
Lake Forest, IL, May 16, 2001 – Packaging Corporation of America (NYSE: PKG) reported today the initiation of a stock repurchase program to buy up to $100 million of the company's outstanding common stock over the next twelve months. Common stock repurchases will begin immediately and shares will be repurchased from time to time in compliance with Securities and Exchange Commission Rule 10b-18.
"In two years of operation, we have reduced debt by over $1 billion and lowered our debt to total capital ratio from 84% to 54% currently," said Paul T. Stecko, Chairman and CEO. "We plan to continue to pay down debt and anticipate that we will reduce our total debt by an additional $50 million by the end of 2001. In addition, we believe shareholder value will be further enhanced by the common stock repurchase program announced today," added Mr. Stecko.
PCA is the sixth largest producer of containerboard and corrugated packaging products in the United States, with sales of $1.9 billion in 2000. PCA operates four paper mills and 65 corrugated product plants in 25 states across the country.
For further information contact:
Packaging Corporation of America
INVESTOR RELATIONS: (877) 454-2509