OKLAHOMA CITY, May 17, 2006 (PRIMEZONE) -- Dobson Communications Corporation announced that Dobson CC Limited Partnership ("DCCLP"), the largest shareholder of Dobson Communications Corporation (Nasdaq:DCEL) (the "Company") and the family partnership of the Company's Chairman of the Board, Everett R. Dobson, has entered into a variable share prepaid forward sale contract covering 7,212,736 shares of the Company's common stock.
DCCLP is entering into the forward sale arrangement and plans to use 100% of the proceeds for the purpose of fully terminating an existing transaction previously collateralized by shares of the Company's common stock. During the term of the contract, DCCLP will maintain voting rights, and will participate to a significant degree in future stock price appreciation. DCCLP also retains the right to settle the contract for an equivalent amount of cash in lieu of stock. The variable forward sale contract does not apply to the remaining 13,853,804 shares of the Company's common stock held by DCCLP or any vested or unvested option shares owned by Mr. Dobson.
The variable forward sale is scheduled to settle in May of 2008. DCCLP and Mr. Dobson have filed a Form 144, and will be filing a Form 4, with the Securities and Exchange Commission in connection with this contract.