Entercom Proposes Stock Option Swap
March 24, 2009 at 5:40 AM (PT)
ENTERCOM has filed a Form 8-K with the SEC disclosing that it is asking shareholders to approve a plan to offer to Company employees and non-employee directors a one-time opportunity to voluntarily exchange all of their outstanding stock options with exercise prices equal to or greater than $11.80 per share for a lesser number of restricted stock units of the Company.
The exchange ratio would be at a ratio of one restricted stock unit per every 4.5 options with a strike price of $30 or more per share and 2.25 options with a strike price of between $11.80 and $30 per share. The plan would reduce outstanding options from 3.3 million to 1.1 million, with restricted stock units rising from 1.4 to 2.1 million. New shares would vest over a four year period, with half vesting in two years and an additional 25% in three years and the rest in four.
The plan is included in the proxy statement for the company's MAY 12th annual meeting. The item requests that the Company's shareholders approve an amendment to the ENTERCOM Equity Compensation Plan to permit an option exchange program.