MCI Redeems $700M WorldCom Notes

WorldCom's subsidiary exercises its option to redeem $700 million Callable/Redeemable Notes, which WorldCom will pay off with cash

April 3, 2002

1 Min Read

CLINTON, Miss. -- WorldCom, Inc. (Nasdaq: WCOM - news, MCIT - news) today announced that its wholly owned subsidiary, MCI Communications Corporation, has exercised its option to call and cause the redemption of its $700 million 6.125% Callable/ Redeemable Notes due April 15, 2012 (CUSIP Number: 552673AX3). The aggregate outstanding principal amount of the notes at maturity is $700 million. The company will use cash to retire the notes. WorldCom has a strong financial position, including more than $2.2 billion in cash and cash equivalents as of March 31, 2002, up from $1.4 billion at December 31, 2001. At March 31, 2002, total debt was essentially unchanged from year-end at $30 billion and the company has no bank debt or commercial paper outstanding. "WorldCom's decision to retire the notes reflects the company's strong liquidity position and positive free cash flow,'' said Scott D. Sullivan, WorldCom chief financial officer. "The repayment of these notes is consistent with our stated objective of reducing overall debt.'' WorldCom Inc.

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