ONEONTA, Ala.--(Business Wire)--
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 December 30, 2009 to holders of record at the close of business on
December 15, 2009. The distribution represents the twentieth consecutive
quarterly distribution since the company completed its initial public offering
in December 2004.
Each IDS is comprised of one share of Class A 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 Class A common
stock and an interest payment on the senior subordinated notes for the period
from September 30, 2009 through December 29, 2009 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 2009 as they were
in 2008.
ABOUT OTELCO
Otelco Inc., headquartered in Oneonta, Alabama, 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 100,000 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, each of which can trace its history as a local
telecommunications provider as far back as the early 1900s. It also provides
competitive retail and wholesale communications services through several
subsidiaries. For more information, visit the Company`s web site at
www.OtelcoInc.com.
Otelco Inc.
Curtis Garner
Chief Financial Officer
205-625-3571
Curtis@otelcotel.com
Copyright Business Wire 2009
