OKLAHOMA CITY, March 18, 2002 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) announced today that its majority shareholder, Dobson CC Limited Partnership (DCCLP), and Bank of America, N.A. have agreed to extend DCCLP's loan to March 31, 2003. DCCLP said it will have the right, under certain conditions, to extend the maturity date of the loan for an additional year.
Under the new loan agreement, the default provisions of the revised loan will no longer be linked to the market price of DCEL common stock, but rather to existing financial ratios in Dobson Communications' primary credit agreements.
During the term of the new loan agreement (or the extended term), no mandatory payments are required from DCCLP, except upon the sale of collateral. DCCLP has adopted a written sales plan under SEC Rule 10b5-1 under which it may sell under certain conditions a limited number of its DCEL shares, not to exceed 1.5 million shares per quarter. DCCLP stated that it is not required and does not intend to sell any shares at current price levels. Proceeds from such sales would be used to pay interest, principal and related expenses, the partnership said.
DCCLP may elect to extend the loan for an additional year under certain conditions, including paying at least $75 million against the loan's principal and interest.
Dobson Communications is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, Dobson serves markets covering a population of 11.5 million in 17 states. For additional information on the Company and its operations, please visit its Web site at www.dobson.net.