My Account Store Store

SPINOFF: Lumos Networks from NTelos

Issue: How do I enter the spinoff of Lumos Networks from NTelos?

Cause: Ntelos spun off its wireless business as Lumos Networks (LMOS). Just before the spinoff NTelos recorded a reverse 1 for 2 split of its stock. Be sure this reverse split is entered before entering the spinoff transaction. The SEC filing for this spinoff can be found through the NTelos web site at:
http://ir.ntelos.com/Cache/1001161673.PDF?D=&O=PDF&IID=4110676&Y=&T=&FID=1001161673
The cost basis allocation information can be found on the NTelos web site at:
http://ir.ntelos.com/Cache/1500038052.PDF?D=&O=PDF&IID=4110676&Y=&T=&FID=1500038052 . Their calculation uses a weighted average of share prices for the first 5 days of trading after the spinoff for NTelos and Lumos Networks.

Resolution:
This action will need one entry in the accounting software. The information below is based on the information available from NTelos including SEC filings. It is important that the NTelos reverse 1 for 2 stock split dated 10/24/2011 be entered BEFORE this spinoff is entered.

The Spinoff Entry
Go to Transactions > Spinoff or Accounting > Securities > Record spinoff of securities depending on the version of the software being used. If you are unfamiliar with spinoff transactions you can get help at this URL: http://www.iclub.com/support/kb/default.asp?page=normal_spinoff
Here is the information you need to complete the spinoff.
Date: 10/31/2011
Select Parent Security (or Parent Company) : NTelos (NTLS)
Remaining Basis Percentage: 61.
Cash received: See your broker statement for cash-in-lieu received
Spinoff Security (or Symbol of New Company) : Lumos Networks (LMOS)
Shares received : 1 x (#of NTLS shares owned) (Remember to include fractional shares.)
For example, if you owned 100 NTLS shares, you should receive 1 x 100 = 100 LMOS shares.
Price Per Share : 11.10
Save the transaction and the spinoff has been entered.



 
  
About    Press    Management    Privacy Policy    Terms of Service    Contact

copyright © 1989 - ICLUBcentral Inc. or its affiliates