Otelco suspends dividends on common stock income deposit securities

By Tali David

Minneapolis, April 20 - The board of directors of Otelco Inc. decided to suspend dividends on the common stock portion of its income deposit securities, effective immediately, according to a press release.

This dividend amounted to $0.705 per unit for 2011 and $0.17625 per unit for the first quarter of 2012.

Otelco said that holders of the securities continue to receive quarterly interest payments on the $7.50 subordinated note, which amounts to $0.975 per unit per year or $0.24375 per unit per quarter.

The interest for second quarter will be paid on July 2 to holders of record at the close of business on June 15.

The suspension comes after the announcement that Time Warner Cable will not renew its existing contract for wholesale network connections provided by Otelco, the release said.

Otelco is an Oneonta, Ala.-based traditional wireline telephone services provider in several rural communities in Alabama, Maine and Missouri.

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