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Dobson launches exchange offer

OKLAHOMA CITY-Dobson Communications Corp. launched its offer to exchange cash and stock for up to all of its outstanding 12.25-percent and 13-percent senior exchangeable preferred stock.

The company said the offer would provide for each share of preferred stock tendered $301 in cash and one share of Dobson’s newly created series J mandatory convertible preferred stock. The new stock is convertible at the option of the holder into 209 shares of Dobson’s class A common stock and will automatically convert if the volume weighted average price of the class A common stock exceeds $2.25 per share for any 20-trading-day period.

Dobson’s stock was trading up 5 cents per share early Tuesday at $1.98 per share.

As part of the exchange offer, Dobson said it will also solicit preferred stock holders to amend the respective certificate of designation governing each series of preferred stock to eliminate all voting rights, other than those required by law and substantially all of the restrictive covenants applicable to such series of preferred stock.

Dobson said it intends to seek shareholder approval for an increase in the amount of its class A common stock at its 2005 annual stockholder meeting.

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