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LAWRENCE, Kan., April 27, 2006 /PRNewswire-FirstCall via COMTEX/ -- The board of directors of Protection One, Inc. (PONN), one of the largest electronic security companies in the United States, has declared a one-time special dividend of $3.86 per share of common stock. The dividend is payable on May 12, 2006, to holders of record on May 8, 2006.
In addition, Protection One has successfully closed an add-on debt financing, increasing its currently outstanding term loan amount by approximately $66.8 million, to approximately $300 million, extending the term loan maturity date by approximately one year to March 31, 2012, and decreasing the interest rate on the facility by 50 basis points, to LIBOR + 2.50%. The incremental proceeds from the amended term loan, together with excess cash, will be used to pay the special cash dividend, and to make related payments to members of management who hold options on the Company's common stock. The total amount of the distribution is expected to be approximately $75 million.
"We are extremely pleased to have successfully completed the add-on debt financing which permits us to unlock substantial value for our shareholders by the payment of this special dividend," said Richard Ginsburg, Protection One's President and CEO. "Due to the positive reception from the lending community during the financing process, we were also able to significantly lower our borrowing costs. With a strong capital structure in place, we intend to focus our efforts on continuing to improve and grow our business."
After payment of the special dividend, Protection One expects to have total funded debt of approximately $410 million and approximately $15 million of cash on hand. The Company currently has approximately $24 million in available credit under its $25 million revolving credit facility.
Protection One, Inc. is one of the largest providers of security monitoring services in the United States. Including its Network Multifamily subsidiary, a leading security provider to the multifamily housing market, Protection One provides monitoring and related security services to more than one million residential and commercial customers. For more information about Protection One, visit http://www.ProtectionOne.com .
Forward-looking Statements: Certain matters discussed in this news release are "forward-looking statements." The Private Securities Litigation Reform Act of 1995 has established that these statements qualify for safe harbors from liability. Forward-looking statements may include words or phrases such as "we believe," "we anticipate," "we expect" or words of similar meaning. Forward- looking statements may describe our future plans, objectives, expectations or goals. Such statements may address future events and conditions concerning customer retention, debt levels, debt service capacity, revenue stabilization and stabilization of our customer account base. Our actual results may differ materially from those discussed here as a result of numerous factors, including our significant debt obligations, net losses and competition. See our Annual Report on Form 10-K and Form 10-K/A for the year ended December 31, 2005, for a further discussion of factors affecting our performance. Protection One disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this news release.
SOURCE Protection One, Inc.
-------------------- Wide diversification is only required when investors do not understand what they are doing W.Buffet
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I've been watchin this for a couple days I was hoping it would go down so I could pick up some at a reasonable price. Just got 150 today. So 150 shares multipied by the 3.86 divy equals a nice check of $579 bucks!
-------------------- Wide diversification is only required when investors do not understand what they are doing W.Buffet
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quote:Originally posted by Stockstar69: If you don't have it, too late! I wish I would have known about it earlier but then again it's down $6.00 per share / 30%. OUCH!
You can still pick up some today for monday, and it'll be on record
-------------------- Wide diversification is only required when investors do not understand what they are doing W.Buffet
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record date mainly bookkeeping, *unless* there's no ex-date, which is common with restricted-share divvies--in that case, you may even have to own T+3, ie, 3 days to settle before record date. I always call NASD on those...
If it has an ex-date, that's the day it begins trading "ex" the dividend, ie, "without" the dividend. Buys before the ex-date come with "due bills" attached. It's the due bills that entitle you to the divvy...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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WELLLLLLLLLLLLLLLLLLLLLLL That was lookin pretty ****ty this morning when i bought in, then found out i was one day past the x-date. But i set my sell * 24 and it took! Wooot wooot. 25% gain for a mistake! hahah
-------------------- Wide diversification is only required when investors do not understand what they are doing W.Buffet
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