NEW YORK-Using funds from a bank credit facility, Metrocall Inc., Alexandria, Va., paid $16.2
million to buy back all outstanding shares of its Series B junior preferred stock. The repurchased shares will be
retired.
By repurchasing the securities, the nationwide paging and messaging carrier said it saved $2.2 million
compared with the redemption and liquidation value of the stock.
The repurchased preferred stock was entitled to an
annual dividend of 14 percent of stated value, payable in cash or additional shares of preferred stock. The preferred
stock shares bought back were convertible into a total of about 2.86 million shares of common stock.
In a separate
announcement, Page America Group Inc., Hackensack, N.J., said it would be able to retain its ownership of 3.06
million common stock shares of Metrocall because it had found alternatives to repaying bank debt.
Page America
announced Jan. 11 it had raised $15.7 million by selling all of the Metrocall Series B convertible preferred stock it
owned. The company said it used $11.1 million from that sale to repay in full its outstanding bank debt and added the
remaining $4.6 million to its cash reserves.
“Consistent with [the] plan of liquidation and distribution, as
approved by [our] shareholders, the company now must determine the amount of cash reserves required to satisfy
future expenses and liabilities,” Page America said.
“Following this assessment, the company will be in
a position to make liquidating distributions to its holders of subordinated debt, preferred stock and common
stock.”
