AMERICAN EXPRESS REPURCHASES WARRANTS FROM U.S. DEPARTMENT OF TREASURY
NEW YORK, July 29, 2009 -- American Express announced today that it has repurchased the warrants issued to the United States Department of Treasury as part of the Capital Purchase Program (CPP) for $340 million.
In June, American Express repurchased $3.39 billion of preferred shares issued under the CPP. The company paid a total of $74.4 million in dividends to the U.S. Treasury. Taking into account the dividends and the repayment of warrants -- which total $414.4 million -- U.S. Treasury earned an annualized 26 percent return on its investment.
The repurchase price of the warrants reflects, in part, the appreciation of American Express' share price since the preferred shares were issued in January of this year.
American Express Company is a leading global payments and travel company founded in 1850. For more information, visit www.americanexpress.com.
