Online Vacation Center Holdings Corp. Announces Repurchase of 1,181,600 Shares and Debenture Financing
Online Vacation Center Holdings Corp. announced today it has repurchased 1,181,600 shares of its common stock.
On October 1, 2019, the Company commenced an offer to purchase up to 1.5 million of its common shares at a price of $2.50 per share. The offer expired on November 15, 2019 and under the terms of the offer, the Company repurchased 121,600 shares for a total cost of $304,000.
On January 1, 2020, the Company commenced an offer to purchase 1,060,000 shares of its common stock in exchange for Senior Unsecured Debentures ("Debentures") with five shareholders: Online Vacation Center Holdings Corp Trust Agreement, Edward B. Rudner Trustee; Alexander J. Rudner Trust, Edward B. Rudner Trustee; Catherine Anne Rudner Trust, Edward B. Rudner Trustee; Deanna Rudner; and Daniel J. Rudner. The shares were purchased at a price of $2.50 per share for a total cost of $2.65 million. All repurchased shares were immediately retired. The Company had 8,654,727 shares of common stock outstanding at December 31, 2019, and now has 7,594,727 shares of common stock outstanding.
The Debentures have a maturity date of February 1, 2040 and bear interest from the date of issue at 4.0% per annum, with interest and principal payable quarterly on February 1, May 1, August 1, and November 1 of each year.
Online Vacation Center Holdings Corp. is a Florida holding company, focused on building a network of diversified vacation marketers with a wide range of products that can be cross-sold to an extensive customer base. Online Vacation Center Holdings Corp. is one of the country's largest cruise retailers. Its portfolio of travel companies, including Online Vacation Center, Dunhill Vacations News, Luxury Link, Enrichment Journeys and Home Based Travel Experts dba Expedia CruiseShipCenters®, OVC, allows customers to research, plan and purchase a vacation. The Company, based in Fort Lauderdale, Florida, has been in business for 47 years. Additional information can be found at www.onlinevacationcenter.com.
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