MONROE, La.--(BUSINESS WIRE)--Feb. 21, 2006--CenturyTel, Inc.
(NYSE: CTL) announced today that its board of directors approved a
stock repurchase program authorizing the Company to repurchase up to
$1 billion of its common stock and terminated the approximately $13
million remaining balance of its $200 million share repurchase program
approved in February 2005. The board of directors also increased
CenturyTel's
quarterly cash dividend to $.0625 from $.06 per share, a
4.2 percent increase, payable on March 17, 2006, to shareholders of
record on March 6, 2006.
"This $1 billion repurchase program demonstrates CenturyTel's
commitment to return a substantial portion of its available cash to
shareholders," said Glen F. Post III, chairman and chief executive
officer. "As with our previous share repurchase programs, our strong
free cash flow and solid balance sheet enable us to repurchase shares
at attractive prices that will be accretive to earnings and free cash
flow per share. Additionally, CenturyTel
has now increased its cash
dividend for the 33rd consecutive year."
CenturyTel
intends to repurchase the first $500 million of common
stock through accelerated share repurchase (ASR) agreements entered
into with investment banks. CenturyTel
expects to fund these
agreements principally through borrowings under its $750 million
credit facility and cash on hand. The Company expects to use free cash
flow generated during the year to repay the credit facility. Under
these ASR agreements, the Company will repurchase and retire 14.36
million shares of its common stock at an average initial price of
$34.83 per share.
The investment banks are expected to repurchase an equivalent
number of shares in the open market in the coming months. Once these
repurchases are complete, the Company may receive or be required to
pay a price adjustment (payable in either shares or cash) based
principally on the actual cost of the shares repurchased by the
investment banks.
Once the investment banks complete the ASRs, CenturyTel
may
repurchase shares under the remaining $500 million balance of the $1
billion program in the open market, in privately negotiated
transactions or through another ASR program, depending upon market
conditions and other factors. The program will expire on June 30,
2007, unless extended by CenturyTel's
board of directors.
As of January 31, 2006, CenturyTel
had approximately 129.7 million
common shares outstanding. At today's $34.83 closing price of the
Company's common stock, this $1 billion repurchase program represents
approximately 22 percent of common shares outstanding.
This press release includes certain forward-looking statements.
Actual results may differ materially from those in the forward-looking
statements. Factors that could affect actual results include but are
not limited to the possibility of unforeseen near-term cash
requirements, changes in the trading price of CenturyTel's
securities,
changes in general market, economic or industry conditions impacting
the ability or willingness of the Company to repurchase stock, or
other risks referenced from time to time in the Company's filings with
the Securities and Exchange Commission. You should not place undue
reliance on these forward-looking statements, which speak only as of
the date of this press release.
CenturyTel
(NYSE: CTL) is a leading provider of consumer and
business communications solutions in rural areas and small to mid-size
cities in 26 states and is included in the S&P 500 Index. The Company
delivers advanced communications with a personal touch. Visit
CenturyTel
at www.centurytel.com.
CONTACT: CenturyTel, Inc.
Media:
Patricia Cameron, 318-388-9674
patricia.cameron@centurytel.com
or
Investors:
Tony Davis, 318-388-9525
tony.davis@centurytel.com
www.centurytel.com
SOURCE: CenturyTel, Inc.