Citizens announces $150 million debt retirement program

By Lisa Kerner

Erie, Pa., Feb. 24 - Citizens Communications said its board of directors has authorized a debt retirement that will enable it to retire up to $150 million of debt prior to maturity over the next 12 months.

The directors also approved a $300 million stock repurchase program.

The previously announced debt repayments and the new debt retirement program total $427 million of debt that may be repaid during 2006 and 2007 and will result in a reduction of 11% of Citizen's debt.

The new stock repurchase program, in combination with a previous 2005 program, will result in the retirement of almost 13% of the company's common stock.

During the fourth quarter, the company bought 6,119,000 shares of its common stock at a total cost of $78 million and completed its $250 million authorized share repurchase program. Under this program, the company repurchased a total of 18,775,000 shares of common stock.

Citizens reported fourth-quarter 2005 revenues of $556.1 million, operating income of $173.2 million and net income of $76.8 million.

Citizens expects to receive approximately $64.6 million in cash upon the liquidation of the Rural Telephone Bank during the second quarter of 2006.

The previously announced sale of Electric Lightwave, LLC for $247 million (including $243 million in cash) is expected to close during the third quarter of 2006.

Citizens is a Stamford, Conn. telecom services provider.

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