OKLAHOMA CITY, March 1, 2006 (PRIMEZONE) -- Dobson Communications Corporation (the "Company") (Nasdaq:DCEL) today announced it has completed the redemption of all of the remaining outstanding shares of its 12-1/4% Senior Exchangeable Preferred Stock (CUSIP: 256069-30-3) and 13% Senior Exchangeable Preferred Stock (CUSIP: 256072-50-5) (collectively, the "Preferred Stock").
The cash redemption price for the 12-1/4% Senior Exchangeable Preferred Stock is $1,220.38 per share, which represents 100.000% of the liquidation preference, plus an amount in cash equal to all accumulated and unpaid dividends (including applicable interest for accrued but unpaid dividends) up to, but not including, the redemption date of March 1, 2006. The cash redemption price for the 13% Senior Exchangeable Preferred Stock is $1,270.98 per share, which represents 104.333% of the liquidation preference, plus an amount in cash equal to all accumulated and unpaid dividends (including applicable interest for accrued but unpaid dividends) up to, but not including, the redemption date of March 1, 2006.
The total redemption price of $41.7 million for the Preferred Stock was funded from a distribution of cash on hand from Dobson Cellular Systems, Inc., an indirect wholly-owned subsidiary of the Company. The redemption reduces outstanding Preferred Stock by $33 million and will save the Company approximately $4 million in future annual dividends.
The Company is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, the Company owns wireless operations in 16 states. For additional information on the Company and its operations, please visit its website at www.dobson.net.