Correction: An earlier version of this report stated that Dana emerged from bankruptcy in 2012. It actually emerged from bankruptcy in 2008.
Auto part manufacturer Dana Holding (NYSE:DAN) agreed to expand its preexisting buyback on Friday by roughly $900 million, underscoring its building confidence as the auto market rebounds.
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The increase comes on top of an earlier repurchase program of which close to $100 million was returned to shareholders. Dana said it expects to have “sufficient liquidity” to support the initiative.
"This expanded program reflects confidence in the long-term prospects of our business," Dana CEO Roger Wood said in a statement. "We continue to review our capital structure with the goal of best utilizing our strong balance sheet to maximize shareholder value."
The Maumee, Ohio-based maker of axles, sealing and thermal technologies that improve passenger-car efficiency also agreed to refinance its current U.S. revolving credit facility on Friday, establishing a new five-year, $500 million, revolving facility that it said will both lower costs and increase financial flexibility.
Shares of Dana climbed more than 3.2% to $18.80 in recent trade. They have surged by nearly 41% over the last 12 months as demand for new technologies and fuel efficiency rebound in the auto sector.