Dex One to Appeal Delisting Notice From NYSE
- Will Cite Pending Merger with SuperMedia Inc. in Appeal -
CARY, N.C. -- February 27, 2013
Dex One Corporation (NYSE: DEXO) today received notice from the New York Stock
Exchange (NYSE) that it was not in compliance with the NYSE listing standard
in Section 802.01B of the Listed Company Manual which requires the company to
maintain an average global market capitalization over a consecutive 30 trading
day period of not less than $100 million.
The company notified the Exchange it will appeal the decision and file a
formal request shortly. During the appeal process, the company anticipates
DEXO shares will continue to trade on the NYSE.
Until a determination is made the company's trading symbol will bear the "BC"
indicator until it is either delisted or is compliant with the NYSE's listing
Dex One said it respects the Exchange’s rules and processes, but believes
several factors related to its proposed merger with SuperMedia Inc. warrant
*The combined company pro forma market capitalization will be in excess of
$150 million, based on current trading levels of Dex One and SuperMedia
*The transaction has been structured as a stock-for-stock merger and will
include a 1-for-5 reverse split at merger close to alleviate any future
non-compliance; listing issues
*More than 70 percent in number and 80 percent in value of Dex One secured
lenders support the merger;
*The combination will create one of the largest marketing services
companies in the United States with a stronger financial position than
either of its predecessors; and
*The merger is on track to close in the first half of 2013.
There is no assurance Dex One’s request for continued listing will be granted.
ABOUT DEX ONE CORPORATION
Dex One Corporation (NYSE: DEXO) is a leading marketing solutions provider
helping local businesses and their customers connect wherever and whenever
they choose to search. Building on its heritage of delivering print-based
solutions, the company provides integrated products and services to help its
clients establish their digital presence and generate leads. Dex One’s locally
based marketing experts offer a broad network of local marketing solutions
including online, mobile and print search solutions, such as DexKnows.com. For
more information, visit www.DexOne.com.
SAFE HARBOR PROVISION
This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval. The
proposed merger transaction between SuperMedia Inc. ("SuperMedia") and Dex One
Corporation ("Dex") will be submitted to the respective stockholders of
SuperMedia and Dex. In connection with the proposed transaction, Newdex, Inc.,
a subsidiary of Dex ("Newdex"), has filed with the Securities and Exchange
Commission ("SEC") a registration statement on Form S-4 that includes a joint
proxy statement/prospectus to be used by SuperMedia and Dex to solicit the
required approval of their stockholders and that also constitutes a prospectus
of Newdex. INVESTORS AND SECURITY HOLDERS OF SUPERMEDIA AND DEX ARE ADVISED TO
CAREFULLY READ THE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS
(INCLUDING ALL AMENDMENTS AND SUPPLEMENTS) AND OTHER RELEVANT DOCUMENTS FILED
WITH THE SEC BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION,
THE PARTIES TO THE TRANSACTION AND THE RISKS ASSOCIATED WITH THE TRANSACTION.
A definitive joint proxy statement/prospectus has been sent to security
holders of SuperMedia and Dex seeking their approval of the proposed
transaction. Investors and security holders may obtain a free copy of the
joint proxy statement/prospectus and other relevant documents filed by
SuperMedia and Dex with the SEC from the SEC's website at www.sec.gov. Copies
of the documents filed by SuperMedia with the SEC are available free of charge
on SuperMedia's website at www.supermedia.com under the tab "Investors" or by
contacting SuperMedia's Investor Relations Department at (877) 343-3272.
Copies of the documents filed by Dex with the SEC are available free of charge
on Dex's website at www.dexone.com under the tab "Investors" or by contacting
Dex's Investor Relations Department at (800) 497-6329.
SuperMedia and Dex and their respective directors, executive officers and
certain other members of management may be deemed to be participants in the
solicitation of proxies from their respective security holders with respect to
the transaction. Information about these persons is set forth in the joint
proxy statement/prospectus and Dex's proxy statement relating to its 2012
Annual Meeting of Stockholders, as filed with the SEC on March 22, 2012, and
subsequent statements of changes in beneficial ownership on file with the SEC.
These documents can be obtained free of charge from the sources described
above. Security holders and investors may obtain additional information
regarding the interests of such persons, which may be different than those of
the respective companies' security holders generally, by reading the joint
proxy statement/prospectus and other relevant documents regarding the
transaction (when available), which will be filed with the SEC.
Certain statements contained in this document are "forward-looking statements"
subject to the safe harbor created by the Private Securities Litigation Reform
Act of 1995, including but not limited to, statements about the benefits of
the proposed transaction and combined company, including future financial and
operating results and synergies, plans, objectives, expectations and
intentions and other statements relating to the proposed transaction and the
combined company that are not historical facts. Where possible, the words
"believe," "expect," "anticipate," "intend," "should," "will," "would,"
"planned," "estimated," "potential," "goal," "outlook," "may," "predicts,"
"could," or the negative of such terms, or other comparable expressions, as
they relate to Dex, SuperMedia, the combined company or their respective
management, have been used to identify such forward-looking statements. All
forward-looking statements reflect only Dex's and SuperMedia's current beliefs
and assumptions with respect to future business plans, prospects, decisions
and results, and are based on information currently available to Dex and
SuperMedia. Accordingly, the statements are subject to significant risks,
uncertainties and contingencies, which could cause Dex's, SuperMedia's or the
combined company's actual operating results, performance or business plans or
prospects to differ materially from those expressed in, or implied by, these
Factors that could cause actual results to differ materially from current
expectations include risks and other factors described in Dex's and
SuperMedia's publicly available reports filed with the SEC, which contain
discussions of various factors that may affect the business or financial
results of Dex, SuperMedia or the combined company. Such risks and other
factors, which in some instances are beyond either company's control, include:
the continuing decline in the use of print directories; increased competition,
particularly from existing and emerging digital technologies; ongoing weak
economic conditions and continued decline in advertising sales; the companies'
ability to collect trade receivables from customers to whom they extend
credit; the companies' ability to generate sufficient cash to service their
debt; the companies' ability to comply with the financial covenants contained
in their debt agreements and the potential impact to operations and liquidity
as a result of restrictive covenants in such debt agreements; the companies'
ability to refinance or restructure their debt on reasonable terms and
conditions as might be necessary from time to time; increasing interest rates;
changes in the companies' and the companies' subsidiaries credit ratings;
changes in accounting standards; regulatory changes and judicial rulings
impacting the companies' businesses; adverse results from litigation,
governmental investigations or tax related proceedings or audits; the effect
of labor strikes, lock-outs and negotiations; successful realization of the
expected benefits of acquisitions, divestitures and joint ventures; the
companies' ability to maintain agreements with major Internet search and local
media companies; the companies' reliance on third-party vendors for various
services; and other events beyond their control that may result in unexpected
adverse operating results.
With respect to the proposed merger, important factors could cause actual
results to differ materially from those indicated by forward-looking
statements included herein, including, but not limited to, the ability of Dex
and SuperMedia to consummate the transaction on the terms set forth in the
merger agreement; the risk that anticipated cost savings, growth opportunities
and other financial and operating benefits as a result of the transaction may
not be realized or may take longer to realize than expected; the risk that
benefits from the transaction may be significantly offset by costs incurred in
integrating the companies; potential adverse impacts or delay in completing
the transaction as a result of obtaining consents from lenders to Dex or
SuperMedia; failure to receive the approval of the stockholders of either Dex
or SuperMedia for the transaction; and difficulties in connection with the
process of integrating Dex and SuperMedia, including: coordinating
geographically separate organizations; integrating business cultures, which
could prove to be incompatible; difficulties and costs of integrating
information technology systems; and the potential difficulty in retaining key
officers and personnel. These risks, as well as other risks associated with
the merger, are more fully discussed in the proxy statement/prospectus
included in the registration statement on Form S-4 that Newdex filed with the
SEC in connection with the proposed transaction.
None of Dex, SuperMedia or the combined company is responsible for updating
the information contained in this document beyond the publication date, or for
changes made to this document by wire services or Internet service providers.
Dex One Corporation
Chris Hardman, 303-784-1351
Cobb Bay Partners
James Gruskin, 800-497-6329
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