Boston, MA 05/28/2013 (wallstreetpr) – In Friday’s trading session, Otelco Inc (NASDAQ:OTT) rose by 25.13%. It opened at $1.93 per share, touched an intraday high of $3.00 and dropped down to close at $1.92 per share. More than 1.49 million shares were traded in Friday’s trading session. This number stood above the average volume of 0.127 million that was measured over a 30-day period.
The company announced that it has finally emerged from bankruptcy and that its balance-sheet restructuring process is now complete. This includes an extension of its senior credit-facility. Otelco Inc (NASDAQ:OTT) repaid $28.7 million on the senior credit facility and has extended its maturity through to April 2016. The remainder of $133.3 million will operate on quarterly principal payments. These will be 1.25% of the new loan amount as well as an interest on outstanding balance, at 6.5%. Apart from this, it will use 75% of its quarterly, free-cash flow to additionally reduce outstanding balance on the loan, every quarter. This facility includes a revolver of $5.0 million which remained un-drawn at closing. These actions, in addition to the some others, complete the requirements of Otelco Inc (NASDAQ:OTT) pre-packaged Plan and permitted Otelco to exit bankruptcy on Friday.
Otelco provides a variety of telecommunications services on a wholesale and retail basis. These include long distance and local calling, network access from and to its customers, dial-up Internet access and digital high-speed, data transport, cable, Internet protocol and satellite television, wireless as well as other telephone-related services. Residential and business customers are the primary markets for these services.
