Metrocall redeeming $20 million of preferred stock

New York, Dec. 2 - Metrocall Holdings, Inc. said that it will make a $20 million redemption of 1,793,411 shares, representing about 43% of its outstanding series A preferred stock on Jan. 6, 2004.

Metrocall, an Alexandria, Va.-based provider of paging and wireless messaging services, said that per-share redemption price will be approximately $11.15. Shares will be redeemed on a pro-rata basis from all holders of record as of Dec. 2.

Following this redemption, the company will have redeemed 3.6 million of the 6 million outstanding series A preferred shares issued in connection with its October 2002 reorganization, or about 60% of the outstanding amount.

It said that the voluntary redemption of shares will be completed using $20 million in cash balances generated from operations.

Metrocall said its current cash balances are in excess of $32 million. After the redemption, Metrocall will have about 2.4 million shares of its series A preferred stock outstanding with an aggregate liquidation preference of around $26.7 million.

The latest payment follows an initial $20 million redemption of series A preferred that was completed on Sept. 30, and the retirement in full of approximately $81.5 million aggregate principal amount of Metrocall's long-term debt securities, which was completed on June 30.

Metrocall said that it expects to redeem the remaining 2.4 million shares of outstanding series A preferred stock in 2004.

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