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Technology Stocks : XO Communications (XOXO)

XOXO 34.99

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Dec 21 4:00 PM EST

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To: Ronald P. Margraf Sr. who wrote (878)	12/3/2001 11:08:25 PM
From: Softechie	Read Replies (1) of 1018

MCLD Well they moved quick and swift! They all bought the deal. Monday December 3, 10:57 pm Eastern Time McLeodUSA Reaches Financing Deal McLeodUSA Reaches Recapitalization and Restructuring Agreements CEDAR RAPIDS, Iowa (AP) -- McLeodUSA Inc. [NasdaqNM:MCLD - news] reached an agreement with Forstmann Little & Co. and the McLeodUSA Secured Lenders on a recapitalization and financial restructuring plan that would provide money to pay off bonds. The plan, which is subject to agreement with the McLeodUSA bondholders and other security holders, would eliminate at least 95 percent of the Company's $2.9 billion of bond debt and $300 million of annual interest expense. ``Since announcing our revised business strategy to refocus McLeodUSA on its core business, we have made excellent progress,'' said Chris A. Davis, chief operating and financial officer, Monday. McLeodUSA is offering to pay at least $560 million in cash, plus approximately 14 percent of its common stock, for the bonds. Most of the cash will come from the sale of the McLeodUSA telephone directory publishing business to Forstmann Little for $535 million. Forstmann Little will provide $100 million to fund the balance of the cash being offered to bondholders and to provide additional working capital to the Company. Forstmann Little also has agreed to convert its existing preferred stock into common stock upon consummation of the recapitalization. After the closing of the transaction, Forstmann Little will own approximately 45 percent of the outstanding common equity of McLeodUSA. biz.yahoo.com

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