This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
CHICAGO, Oct. 5, 2012 (GLOBE NEWSWIRE) -- 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.