Citizens Communications Company Announces Closing of Senior Notes Offering and Redemption of Notes.STAMFORD, Conn. -- Citizens Communications Citizens Communications is the parent company of Frontier Telephone, providing telephone and internet access in 24 states. The company headquarters are located at 3 High Ridge Park in Stamford, Connecticut. (NYSE NYSE See: New York Stock Exchange : CZN) announced today that it has completed the previously announced offering of its $700 million aggregate principal amount of 6 1/4 percent senior unsecured notes due 2013. In addition, the company announced that it has irrevocably called for redemption, on December 13, 2004, all $700 million aggregate principal amount of its outstanding 8 1/2 percent senior notes due May 15, 2006 (CUSIP CUSIP See: Committee on Uniform Securities Identification Procedures CUSIP See Committee on Uniform Securities Identification Procedures. No. 17453BAA Baa See BBB. 9) (the "Notes"). Citizens Communications intends to use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering to pay a portion of the redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. for the Notes. The redemption price will be calculated on December 8, 2004. The redemption price will be equal to the present value of the remaining interest and principal payments on the Notes discounted at a rate equal to the then prevailing comparable maturity U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. note yield plus 50 basis points. As a result of the call, Citizens Communications expects to pay a premium of approximately $51 million to retire the securities, based on current interest rates. The company estimates that it will save approximately $15 million in interest expense in 2005 as a result of the call and the completion of the sale of 6 1/4 Notes due 2013. More information on Citizens can be found at www.czn.net. This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. These and all forward-looking statements (including oral representations) are only predictions or statements of current plans that are constantly under review by the Company. All forward-looking statements may differ from actual results. The foregoing information should be read in conjunction with the Company's filings with the U.S. Securities and Exchange Commission including, but not limited to, reports on Forms 10-K and 10-Q. The Company does not intend to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances. |
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