Metrocall redeems $20 million of preferred stock

New York, Jan. 6 - Metrocall Holdings, Inc. said that it had completed the previously announced voluntary redemption of a portion of its 15% series A cumulative preferred stock, on the terms as previously outlined.

Metrocall said that with this preferred stock redemption, it has now repaid or redeemed a total face amount of $121.5 million of its debt and preferred stock obligations (85% of the originally outstanding amount) since the beginning of 2003.

The company additionally, said that it had paid a cash dividend on Dec. 31 on the series A preferred of some 42 cents per share, or $1.8 million total, to the holders of record as of Dec. 15; this payment represented dividends that had accrued on the preferred shares from Oct. 1 through Dec. 31.

As previously announced, Metrocall, an Alexandria, Va.-based provider of paging and wireless messaging services, said on Dec. 2 that it would make a $20 million redemption of 1,793,411 shares, representing about 43%, of its outstanding series A preferred stock on Jan. 6.

The company said the per-share redemption price would be approximately $11.15, and said that shares would be redeemed on a pro-rata basis from all holders of record as of Dec. 2.

Metrocall said that following this redemption and including previous redemption transactions the company will have redeemed 3.6 million of the 6 million series A preferred shares that were issued in connection with its October 2002 reorganization, or about 60% of the originally outstanding amount.

It said that the voluntary redemption of shares would be completed using $20 million in cash balances generated from operations.

Metrocall said its then-current cash balances were in excess of $32 million. It said that after the redemption, it would have about 2.4 million shares of its series A preferred stock outstanding, with an aggregate liquidation preference of around $26.7 million.

The latest payment followed an initial $20 million redemption of series A preferred that was completed on Sept. 30, and the retirement in full of approximately $81.5 million aggregate principal amount of Metrocall's long-term debt securities, which was completed on June 30.

Metrocall said that it expects to redeem the remaining 2.4 million shares of outstanding series A preferred stock some time this year.

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