MONROE, La.--(BUSINESS WIRE)--July 19, 2006--
CenturyTel, Inc. (NYSE: CTL) has completed its
previously announced $500 million accelerated share repurchase (ASR)
program, which completes the first half of the $1 billion repurchase
program approved by the board of directors in February 2006.
On February 21, 2006, CenturyTel entered into ASR agreements with
investment banks under which it repurchased and retired approximately
14.36 million shares of its outstanding common stock, at an average
initial price of $34.83 per share. The investment banks recently
completed their repurchase of an equivalent number of shares in the
open market and on July 19, 2006, CenturyTel made a cash settlement
payment of approximately $28.4 million to the investment banks to
complete the program.
With the completion of this ASR program, CenturyTel may repurchase
an additional $500 million of common stock under its previously
authorized $1 billion repurchase program. The Company currently
expects to purchase the remaining shares under the $1 billion program
through open market purchases, subject to trading window periods and
the program's June 30, 2007 expiration date.
CenturyTel also announced that it recently paid a $59.1 million
deposit to participate in the Federal Communication Commission's
upcoming AWS spectrum auction.
"The acquisition of attractively priced spectrum will enhance
CenturyTel's ability to pursue our broadband services strategies,"
said Glen F. Post, III, chairman and chief executive officer.
"CenturyTel plans to participate in the AWS auction of licenses for
areas in and around our current service areas. This deposit maintains
our flexibility to participate without committing us to bid if values
are not attractive."
The AWS auction is scheduled to begin on August 9, 2006. Unused
deposit amounts will be returned to the Company upon completion of the
auction.
The Company funded the payments referred to above with cash on
hand and short-term borrowings.
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 the demand for the Company's products, changes in general
market, economic or industry conditions impacting the ability or
willingness of the Company to purchase stock or spectrum, 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 communications,
high-speed Internet and entertainment services in small-to-mid-size
cities through our broadband and fiber transport networks. Included in
the S&P 500 Index, CenturyTel delivers advanced communications with a
personal touch to customers in 25 states. Visit us at
www.centurytel.com.
Source: CenturyTel, Inc.