Lexmark announces pricing of debt offering and increase in share repurchase authorization

Lexmark announces pricing of debt offering and increase in share repurchase
authorization

LEXINGTON, Ky., May 20 /PRNewswire-FirstCall/ -- Lexmark International,
Inc. (NYSE: LXK) announced today that it priced yesterday an aggregate of $650
million of fixed rate senior unsecured notes. The notes are split into two
tranches of five- and ten-year notes, respectively. The five-year notes,
which are in the amount of $350 million, will have an effective yield to
maturity of 5.939 percent and will mature June 1, 2013. The ten-year notes,
which are in the amount of $300 million, will have an effective yield to
maturity of 6.687 percent and will mature June 1, 2018. The offering is
subject to customary closing conditions and is expected to close on May 22,
2008. As previously disclosed, the company intends to use the net proceeds
from the offering for general corporate purposes, including to fund share
repurchases, repay debt, finance acquisitions, finance capital expenditures
and operating expenses and invest in any subsidiaries.
The company also announced today that its board of directors authorized on
May 20, 2008 the repurchase of an additional $750 million of its Class A
Common Stock.
The repurchase authority allows the company to selectively repurchase its
stock from time to time in the open market or in privately negotiated
transactions, depending upon market price and other factors, and the company
may use proceeds of the offering for such purpose. The repurchase
authorization provides management with the flexibility to make purchases at
its discretion without target price or timetable constraints.
This repurchase authorization raises the aggregate repurchase
authorization to $4.65 billion from the $3.90 billion previously granted by
the board. The company has used $3.65 billion of this prior authorization to
repurchase approximately 75.6 million shares. With the $750 million of
increased authority, the company now has approximately $1 billion of share
repurchase authority.
Statements in this release which are not historical facts are
forward-looking statements and involve certain risks and uncertainties,
including, but not limited to the results of the proposed debt transaction and
other risks and uncertainties related to the company as described in the
company's Securities and Exchange Commission filings. The company undertakes
no obligation to update any forward-looking statement.
Lexmark has filed a registration statement (including a prospectus) with
the SEC for the offering referred to in this press release. The prospectus in
that registration statement and other documents Lexmark has filed with the SEC
can be obtained for free by visiting EDGAR on the SEC Web site at www.sec.gov.
Alternatively, Lexmark, any underwriter or any dealer participating in the
offering will arrange to send the prospectus if requested by calling J.P.
Morgan Securities Inc. collect at 212-834-4533 or Citigroup Global Markets
Inc. toll free at 1-877-858-5407.
About Lexmark
Lexmark International, Inc. (NYSE: LXK) provides businesses and consumers
in more than 150 countries with a broad range of printing and imaging
products, solutions and services that help them to be more productive. In
2007, Lexmark reported $5.0 billion in revenue.
Lexmark and Lexmark with diamond design are trademarks of Lexmark
International, Inc., registered in the U.S. and/or other countries. All other
trademarks are the property of their respective owners.
SOURCE Lexmark International, Inc.

Investors, John Morgan, +1-859-232-5568, jmorgan@lexmark.com; Media, Todd
Hastings, +1-859-232-6012, thasting@lexmark.com, both of Lexmark
International, Inc.