Inteliquent Declares Special One-Time Cash Dividend of $3.00 per Share
October 05 2012 - 6:00AM
Inteliquent (Nasdaq:IQNT), a leading provider of global
interconnection and interoperability solutions, today announced
that its Board of Directors has declared a special one-time cash
dividend of $3.00 per share, or approximately $97 million in the
aggregate. The dividend will be funded with available cash on hand.
"This special one-time cash dividend permits us to distribute a
substantial portion of our cash balance to our shareholders," said
Ed Evans, Chief Executive Officer of Inteliquent. "In determining
the size of the dividend, the Board sought to insure that we
maintained sufficient capital to allow us to continue to invest in
developing and diversifying our product and service offerings. We
believe that a special one‑time cash dividend of $3.00 per share
achieves this objective while providing a sensible way for our
shareholders to realize the benefit of our cash position. As we go
forward, we will regularly review our capital management strategies
and evaluate opportunities to return capital to our
shareholders."
Inteliquent also announced today that it is engaged in ongoing
negotiations with one of its largest customers that may result in a
significant reduction in the rates that the customer pays to the
Company and require the Company to pay to terminate certain traffic
to that customer.
The payment date for the special one-time cash dividend is
October 30, 2012. At $3.00 per share, the dividend represents
approximately 33% of the Company's closing stock price on October
3, 2012. Pursuant to NASDAQ rules, when a dividend is
declared in a per share amount that exceeds 25% of a company's
stock price, the date on which that company's shares will begin to
trade without the dividend, or ex-dividend, is the first business
day following the payable date. The Company understands from
NASDAQ that, because the dividend is expected to exceed 25% of the
Company's share price, NASDAQ will apply this rule, and the Company
expects, in accordance with this rule, that the ex-dividend date as
set by NASDAQ will be October 31, 2012, the first business day
following the payable date for the dividend. Shareholders of
record on the record date who sell their shares prior to the
ex‑dividend date will not receive the special cash
dividend. The record date for the special one-time cash
dividend is the close of business on October 16, 2012.
About Inteliquent
Headquartered in Chicago, Inteliquent (operating under the legal
names Neutral Tandem, Inc. and Tinet S.p.A. or the name of the
applicable affiliate) provides intelligent networking to solve
challenging interconnection and interoperability issues on a global
scale. With an advanced MPLS network that is highly
interconnected to carriers around the world, Inteliquent provides
voice, IP Transit, Ethernet and hosted service solutions to major
carriers, service providers and content management firms based in
over 80 countries and six continents. With over 130 Ethernet
sites worldwide, the Company is the largest global Ethernet
interconnection provider, a top-five global IP Transit provider and
has a leading IPv6 network. Please visit Inteliquent's website
at www.inteliquent.com and follow us on Twitter@Inteliquent.
The Inteliquent logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3797
Forward-Looking Statements
This press release contains "forward-looking statements" that
involve substantial risks and uncertainties. All statements, other
than statements of historical fact, included in this press release
regarding the amount and timing of the special one-time cash
dividend, our strategy, future operations, future financial
position, future revenues, projected costs, prospects, plans and
objectives of management are forward-looking statements. The words
"anticipates," "believes," "efforts," "expects," "estimates,"
"projects," "proposed," "plans," "intends," "may," "will," "would,"
and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in
the forward-looking statements we make. Factors that might cause
such differences include, but are not limited to: the effects of
competition, including direct connects, and downward pricing
pressure resulting from such competition; our regular review of
strategic alternatives; the impact of current and future
regulation, including intercarrier compensation reform enacted by
the Federal Communications Commission; the risks associated with
our ability to successfully develop and market new services, many
of which are beyond our control and all of which could delay or
negatively affect our ability to offer or market new services; the
risk that our business and the Tinet business will not be
integrated successfully; technological developments; the ability to
obtain and protect intellectual property rights; the impact of
current or future litigation; the potential impact of any future
acquisitions, mergers or divestitures; natural or man-made
disasters; the ability to attract, develop and retain executives
and other qualified employees; changes in general economic or
market conditions, including currency fluctuations; financing
facilities and related availability and terms; changes in our
capital structure, including but not limited to the reduction of
our cash balance related to the declaration of the special one-time
cash dividend discussed above; and other important factors included
in our reports filed with the Securities and Exchange Commission,
particularly in the "Risk Factors" section of our Annual Report on
Form 10-K for the period ended December 31, 2011, as such Risk
Factors may be updated from time to time in subsequent reports.
Furthermore, such forward-looking statements speak only as of the
date of this press release. We undertake no obligation to update
any forward-looking statements to reflect events or circumstances
after the date of such statements.
CONTACT: MEDIA CONTACT:
Jaymie Scotto & Associates
1-866-695-3629
pr@jaymiescotto.com
INVESTOR CONTACT:
Jim Polson
1-866-268-4744
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