Key Developments For LodgeNet Interactive Corporation
LodgeNet Interactive Corporation (LNET.O) (Nasdaq)
LodgeNet Interactive Corp. Announces First Licensing Agreements For b-LAN Communications Technology
LodgeNet Interactive Corp. announced that it has begun licensing its b-LAN (broadband local area network) technology to the two commercial TV manufacturers for inclusion in their newest high-definition (HD) television displays designed for the hospitality market. Initial agreements with LG Electronics and Philips Electronics authorize those companies to develop and market HDTVs which include LodgeNet's communication technology. With this new agreement, the companies will embed LodgeNet's b-LAN technology into their television sets. In addition to the agreements with LG and Philips, LodgeNet is also negotiating with other consumer electronics companies to make its b-LAN technology available.
LodgeNet Interactive Corp. Issues Q4 2009 Revenue Guidance Below Analysts' Estimates
LodgeNet Interactive Corp. announced that for fourth quarter of 2009, it expects to report revenue in the range of $111.0-$115.0 million. According to Reuters Estimates, analysts are expecting the Company to report revenues of $119.9 million for the same period.
Gary H. Ritondaro To Retires As LodgeNet Interactive Corp.'s CFO-Form 8-K
LodgeNet Interactive Corp. reported in its Form 8-K that, on August 17, 2009, Gary H. Ritondaro's intention to retire from his position as the Company's Senior Vice President, Finance, Information and Administration and Chief Financial Officer (CFO) on or about July 31, 2010. The Company plans to engage an executive search firm to locate a successor for Mr. Ritondaro with the intent of appointing a successor and assuring an orderly transition of Mr. Ritondaro's responsibilities by his planned retirement date.
LodgeNet Interactive Corp. Issues Q3 2009 Revenue Guidance
LodgeNet Interactive Corp. announced that for third quarter of 2009, it expects to report revenue in the range of $121.0-$125.0 million.
LodgeNet Interactive Corp. Announces Completion of Offering of $57.5 Million of Convertible Preferred Stock
LodgeNet Interactive Corp. announced that it has successfully completed its offering of 50,000 shares of 10% Series B Cumulative Perpetual Convertible Preferred Stock, $0.01 par value, with a liquidation preference of $1,000 per share. In addition, the Company announced that the initial purchaser exercised the option to purchase an additional 7,500 shares of preferred stock to cover over-allotments in full, bringing the total amount of the preferred stock sold to 57,500 shares. The Company will pay cumulative dividends on the preferred stock from June 29, 2009, at a rate of 10% per annum of the $1,000 liquidation preference per share, subject to adjustment in certain circumstances. Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as the sole initial purchaser in the offering. LodgeNet expects to use half of the net proceeds of the offering to immediately reduce the outstanding balance on the term loan under its Credit Facility and use the balance of the proceeds for general corporate purposes, including further voluntary reductions of the term loan. The preferred stock will be convertible, at the holder's option, into common stock of LodgeNet at an initial conversion rate of 264.5503 shares of LodgeNet's common stock per share of preferred stock, which is equivalent to an initial conversion price of $3.78 per share, or a conversion premium of approximately 10% based on the consolidated closing bid price of $3.43 per share of LodgeNet's common stock on June 23, 2009.
