By Paul A. Harris
St. Louis, June 29 - Otelco, Inc. has priced 3 million Income Deposit Securities (IDS) with a face value of $54.6 million, according to a prospectus made available by the company on Friday.
Each IDS comprises a share of class A common stock and a 13% 12-year senior subordinated note.
The IDSs priced at $19.80 each. The price allocation is $11.68 per share and $8.11 per note.
The total size of the note offering was $22.5 million.
The company may defer interest payments on the notes for up eight quarters.
CIBC World Markets, UBS Investment Bank and Raymond James were the underwriters.
The underwriters have a $10 million greenshoe.
Proceeds will be used to pay down the company's term loan that matures on July 3, 2011.
Otelco is an Oneonta, Ala., traditional wireline telephone services provider in several rural communities in Alabama, Maine and Missouri.
Issuer: | Otelco, Inc.
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Issue: | 3 million IDSs
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Amount: | $54.6 million
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Greenshoe: | $10 million
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Security description: | 3 million Income Deposit Securities (IDS) representing 3 million shares of class A common stock and $22.5 million 13% senior subordinated notes due 2019
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Underwriters: | CIBC World Markets, UBS Investment Bank, Raymond James
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Public offering price: | $19.80 per IDS
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Price allocation: | $11.68 per share and $8.11 per note
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Note component
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Amount: | $22.5 million
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Maturity: | Dec. 30, 2019
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Security description: | Senior subordinated notes
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Call features: | Callable in 2011 at 106.50, 105.20, 103.90, 102.60, 101.30, par on and after 2016
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Interest deferral: | Up to eight quarters
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