MONROE, La., Aug. 14 /PRNewswire-FirstCall/ -- CenturyTel, Inc.
(NYSE: CTL) announced today that it has completed the optional redemption,
which was originally announced on July 12, 2007, of all $165 million of its
4.75% Convertible Senior Debentures, Series K, due 2032.
In lieu of cash redemption, holders of approximately $149.6 million
aggregate principal amount of the debentures elected to convert their holdings
into approximately 3.7 million shares of CenturyTel common stock at a
conversion price of $40.455. The remaining $15.4 million of outstanding
debentures were retired for cash (including premium and accrued and unpaid
interest) in accordance with the terms of the Convertible Debentures. As a
result, CenturyTel no longer has any of the Series K debentures outstanding.
We will reflect a pre-tax charge of approximately $366,000 in third quarter
2007 for the premium on the cash redemption.
The Company has historically included the effect of an assumed conversion
of all of the Convertible Debentures in its diluted shares outstanding
pursuant to applicable accounting guidelines. Therefore, the $149.6 million
conversion of the debentures into common stock will not result in an increase
in diluted shares outstanding.
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 http://www.centurytel.com.
SOURCE CenturyTel, Inc.
Contact: Investors, Tony Davis of CenturyTel, Inc., +1-318-388-9525, tony.davis@centurytel.com