CHICAGO, March 24 /PRNewswire/ -- Chicago Title Corporation (NYSE: CTZ)
announced today that its Board of Directors has approved a new program to
repurchase up to five percent of its currently outstanding shares. Such
purchases will be made on the open market or in privately negotiated
transactions over the next two years and in total would reach a maximum of
1.1 million shares. The timing and amount of actual purchases will depend on
market conditions and corporate considerations. This new program is in
addition to Chicago Title's existing stock repurchase program, which is used
to fund its employee benefit plans.
The Board of Directors also authorized management to proceed with plans to
offer $50 million to $75 million in debt securities, depending on market
conditions and the need for additional borrowings. Proceeds from a debt
offering, if completed, would be used to fund future acquisitions, repay
existing debt or for general corporate purposes. If the offering is made to
the public, it would be registered under the Securities Act of 1933, as
amended, and would only be made by means of a prospectus.
John Rau, president and chief executive officer of Chicago Title, stated,
"We continue to have a balance sheet with the lowest level of debt, the
largest portfolio of cash and marketable securities, and the highest reserve
for title claims among the largest competitors in the title insurance
industry. That financial strength permits us to demonstrate our confidence in
Chicago Title's ongoing performance and growth prospects. It also underscores
our commitment to increasing value to our stockholders."
Chicago Title Corporation, through its subsidiaries, provides title
insurance, escrow and closing services, as well as flood certification, credit
reporting, property valuation and default management services through a
network of more than 340 full service offices and approximately 4,100 agents
nationwide. Chicago Title Corporation's title insurance subsidiaries --
including Chicago Title Insurance Co., Ticor Title Insurance Co. and Security
Union Title Insurance Co. -- issue approximately one in every five title
insurance policies in the United States. Subsidiaries furnishing other real
estate-related products include Chicago Title Flood Services Inc., Chicago
Title Credit Services, Inc., Chicago Title -- Market Intelligence Inc.,
Chicago Title Field Services Inc. and Consolidated Reconveyance, a division of
Chicago Title Insurance Co.
The statements made in this press release contain certain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 that involve a number of
uncertainties and risks that could significantly affect current plans and
anticipated actions and Chicago Title's future financial condition and
results. In addition to the matters described in this press release, risk
factors listed from time to time in Chicago Title's reports and filings with
the Securities and Exchange Commission, including the Information Statement
included in its Registration Statement on Form 10 (File No. 1-13995) and
furnished to the stockholders of Chicago Title's former parent Alleghany
Corporation in connection with the spin-off of Chicago Title by Alleghany, may
affect the results achieved by Chicago Title.
SOURCE Chicago Title Corporation
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Related links:
http://www.ctt.com
CONTACT:
Media, Barbara Harms, 312-223-2461, or
Analysts, Mike Powers 312-223-4783, of Chicago Title Corporation
NOTE TO EDITORS: For further information on Chicago Title's
products and services, visit the web site at http://www.ctt.com.
For more information on Chicago Title Corporation via fax, free
of charge, dial 1-800-PRO-INFO and enter the ticker "CTZ"
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