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Nortel Announces Percentage for Fixed Dividend Rate on Series 6 Preferred Shares issuable on conversion of Series 5 Preferred Shares
Nortel Announces Percentage for Fixed Dividend Rate on Series 6 Preferred Shares issuable on conversion of Series 5 Preferred Shares.
About this update from Newterra Resources, Inc.
[{"type":"text","content":"\n\n\n\n\nTORONTO, Oct. 13 /CNW/ - Nortel Networks Limited today announced that the\nfixed dividend rate for its Cumulative Redeemable Class A Preferred Shares\nSeries 6 will be equal to 80% of the yield on five-year non-callable\nGovernment of Canada bonds to be determined on November 10, 2006. The Series 6\npreferred shares will be issued as of December 1, 2006 to holders of\nCumulative Redeemable Class A Preferred Shares Series 5 of Nortel Networks\nLimited (TSX:NTL.PR.F) who exercise their right to convert their Series 5\npreferred shares, on a one-for-one basis, provided that a minimum number of\nSeries 5 preferred shares are tendered for conversion. If issued, the Series 6\npreferred shares will pay, on a quarterly basis, as and when declared by the\nBoard of Directors of Nortel Networks Limited, a cash dividend based on this\nfixed rate, which will be published on November 15, 2006 in several Canadian\nnewspapers. This rate will be fixed for a period of 5 years. Holders of Series\n5 preferred shares will receive a notice summarizing their conversion right.\nHolders of Series 5 preferred shares who continue to hold such shares\nwill continue to receive a monthly floating rate dividend as and when declared\nby the Board of Directors of Nortel Networks Limited. The floating rate\ndividend will continue to be based on the average prime rate of two Canadian\nbanks in effect for each day of the applicable month.\n\nAbout Nortel\n\nNortel is a recognized leader in delivering communications capabilities\nthat enhance the human experience, ignite and power global commerce, and\nsecure and protect the world's most critical information. Our next-generation\ntechnologies, for both service providers and enterprises, span access and core\nnetworks, support multimedia and business-critical applications, and help\neliminate today's barriers to efficiency, speed and performance by simplifying\nnetworks and connecting people with information. Nortel does business in more\nthan 150 countries. For more information, visit Nortel on the Web at\nwww.nortel.com. For the latest Nortel news, visit www.nortel.com/news.\n\nCertain statements in this press release may contain words such as\n\"could\", \"expects\", \"may\", \"anticipates\", \"believes\", \"intends\", \"estimates\",\n\"targets\", \"envisions\", \"seeks\" and other similar language and ...