By Paul A. Harris
St. Louis, Dec. 16 - Otelco Inc. raised about $132 million Thursday with its sale of 8.659 million Income Deposit Securities (IDS), according to a market source.
The notes priced at $15.20 per IDS, at the low end of the $15.20 to $16.80 price range.
CIBC World Markets, RBC Capital Markets and UBS Securities LLC were the bookrunners.
The IDS are comprised of shares of class A common stock and $64,942,500 of 13% senior subordinated notes due 2019.
In addition to the IDS, the company also sold a separate $8.5 million of 13% senior notes due 2019.
Proceeds will be used to repay $81.2 million of long-term notes and $18 million of Mid-Missouri Holding long-term notes and for general corporate purposes.
Otelco is an Oneonta, Ala., provider of telephone services in Alabama and Missouri.
| Issuer: | Otelco Inc.
|
| Amount: | $131.6 million approximate
|
| Security description: | Income Deposit Securities
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| Number of issues: | 8.659 million
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| Components: | Shares of class A common stock and $64,942,500 of 13% senior subordinated notes due 2019
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| Lead managers: | CIBC World Markets, RBC Capital Markets, UBS Securities LLC
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| Share price: | $15.20 per IDS
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| Price talk: | $15.20 to $16.80 per IDS
|
| Listing exchanges: | American Stock Exchange under the symbol "OTT" and on the Toronto Stock Exchange under the symbol "OTT.un"
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| Third-party notes
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| Amount: | $8.5 million
|
| Maturity: | 2019
|
| Coupon: | 13%
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