ONEONTA, Ala.--(BUSINESS WIRE)--Nov. 15, 2011--
Otelco Inc. (NASDAQ: OTT) (TSX: OTT.un), a wireline telecommunication
services provider in Alabama, Maine, Massachusetts, Missouri,
New Hampshire, Vermont and West Virginia, today announced that its Board
of Directors has declared a distribution of $0.42 per Income Deposit
Security (each an “IDS”), which will be made on December 30, 2011, to
holders of record at the close of business on December 15, 2011. The
distribution represents the twenty-eighth consecutive quarterly
distribution since the company completed its initial public offering in
Each IDS is comprised of one share of Common Stock and $7.50 principal
amount of 13% senior subordinated notes due 2019.
The distribution consists of a dividend of $0.17625 per share of common
stock and an interest payment on the senior subordinated notes for the
period from September 30, 2011, through December 29, 2011, of $0.24375
per note. Currently, it is anticipated that the Company’s dividends will
continue to be treated as a return of capital for shareholder tax
purposes in 2011 as they were in 2008, 2009 and 2010.
Otelco Inc. provides wireline telecommunications services in Alabama,
Maine, Massachusetts, Missouri, New Hampshire, Vermont and West
Virginia. The Company’s services include local and long distance
telephone, network access, transport, digital high-speed data lines and
dial-up internet access, cable television and other telephone related
services. With more than 102,000 voice and data access lines, which are
collectively referred to as access line equivalents, Otelco is among the
top 25 largest local exchange carriers in the United States based on
number of access lines. Otelco operates ten incumbent telephone
companies serving rural markets, or rural local exchange carriers. It
also provides competitive retail and wholesale communications services
through several subsidiaries. For more information, visit the Company’s
website at www.OtelcoInc.com.
Source: Otelco Inc.
Curtis Garner, 205-625-3571