FranklinCovey Redeems $37 Million Shares Of Preferred Stock, New Credit Facility
FranklinCovey (NYSE: FC) today announced that it has given shareholders of its Series A Preferred Stock notice of redemption for the remaining $37.3 million of outstanding preferred stock. The notice was given to shareholders of record as of March 14, 2007, and provides for a redemption price of $25 per share plus accrued dividends through April 4, 2007, the redemption date. The Company estimates that the redemption will result in the acquisition and cancellation of approximately 1.5 million shares of its Series A Preferred Stock. The regular quarterly dividend payment due on March 15, 2007 will be paid on that date.
The Company also announced that its Board of Directors has authorized and the Company has entered into a $25 million revolving line of credit facility with its bankers, JP Morgan Chase and Zions First National Bank. The credit facility will be used for the redemption of the preferred stock and for working capital purposes.
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