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Technology Stocks : McLeod, Inc. (MCLD) ---- IPO -- Ignore unavailable to you. Want to Upgrade?

To: Ashley800 who wrote (718)	9/25/2001 5:31:41 PM
From: BWAC	Respond to of 1418

Ashely, Forstman took common stock for the latest investment. And deleted the dividend on their preferred in exchange for a lower converion price. ----------------------------------- Financing Forstmann Little has agreed to invest an additional $100 million in the company in the form of 36.4 million shares of common stock issued at a price of $2.75 per share, a 12 percent premium over the last five-day average to the current share price. Forstmann Little has also agreed to exchange the convertible preferred stock the firm acquired in 1999 for new convertible preferred stock that has no dividend, which will save McLeodUSA approximately $175 million of cash over the next five years. In addition, the conversion price of Forstmann Little's preferred security will be reduced to $6.10 per share from the $12.17 price of its current stock. The transaction is subject to customary closing conditions and is expected to be completed by the end of the third quarter. Upon completion, Forstmann Little will own approximately 20 percent of the company's fully diluted equity. Ted Forstmann said, "Our additional investment reflects our confidence that McLeodUSA now has the management, business model and balance sheet to take full advantage of the extraordinary opportunity in the years ahead. With the additional Board strength, this company is clearly positioned for the next stage of growth." mcleodusa.com

To: Ashley800 who wrote (718)	9/25/2001 5:32:04 PM
From: Larry Brew	Read Replies (2) \| Respond to of 1418

Ashley800, Has anything really changed with MCLD in the last month? Could it be as simple as margin calls? Tomorrow may tell. Much speculation here and speculation is typically false IMO. Larry

To: Ashley800 who wrote (718)	9/25/2001 5:53:09 PM
From: BWAC	Respond to of 1418

This is the last thing MCLD said on the future earnings: "2001 Guidance and 2002 Preliminary Targets McLeodUSA announced today that it expects its 2001 EBITDA to be $150 to $155 million, excluding one-time events, on revenues of approximately $1.9 billion. For 2002, the company has set initial revenue and EBITDA targets of approximately $2.1 to $2.3 billion and $300 to $325 million, respectively. " ------------------------------------ We know that interest expense is about $230 Million per year. Taxes are zero. Depreciation and Amortization are non cash expenses. EBITDA of $300 Million estimate less $230 Million = $70 Million in cash flow to do something with.