Crocs shares spike on Blackstone investment

NEW YORK (CNNMoney)

Crocs (CROX) shares had been down 7% year to date through Friday's close, but shares were up 9% in premarket trading on the news.

The company said that Blackstone (BX) will invest $200 million in convertible preferred shares, and use most of those proceeds to help repurchase $350 million worth of its stock. It will use excess cash to fund the rest of the repurchase program.

At current prices the repurchase program is large enough to reduce shares outstanding by about 30%, according to the company.

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The company also announced that CEO John McCarvel, who has led the company since 2010, is leaving the company in April. The company termed his departure a retirement, but McCarvel will only be 57 years old at the time of his departure. The company said it has begun an outside search for his successor.

The company did warn that fourth quarter revenue will be at the low end of its previously announced guidance, and that its loss will be close to 23 cents a share rather than 20 cents a share. That new guidance doesn't include restructuring charges in the quarter. Crocs also said it expects it will have charges in 2014 as well.

First Published: December 30, 2013: 9:15 AM ET

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