ONEONTA, Alabama, May 12 /CNW/ - Otelco Inc. (NASDAQ: OTT) (TSX:
OTT.un), a wireline telecommunication services provider in Alabama,
Maine, Massachusetts, Missouri, New Hampshire 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 June 30, 2011, to holders of record at the close of business on June
15, 2011. The distribution represents the twenty-sixth consecutive
quarterly distribution since the company completed its initial public
offering in December 2004.
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 March 30, 2011, through June 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 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 99,000 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.
For further information:
Chief Financial Officer