CLINTON, MS, September 1, 1999 -- MCI WORLDCOM, Inc. (NASDAQ:
WCOM) today announced that it completed its acquisition of CAI Wireless
Systems, Inc. MCI WorldCom already owned a majority of CAI Wireless
stock.
On August 31, 1999, CAI Wireless shareholders approved the merger of
CAI Wireless with a subsidiary of MCI WorldCom. The merger closed as of
midnight, August 31, 1999.
Shareholders of CAI Wireless (other than MCI WorldCom) will receive
$28 in cash in exchange for their shares.
MCI WorldCom also announced that CAI Wireless will redeem in full
all of CAI Wireless' outstanding 13% senior notes due 2004 (CUSIP
Numbers 12476P AB 0 and 12476P AC 8) on October 15, 1999.
The aggregate outstanding principal amount at maturity of the CAI
Wireless senior notes is approximately $213 million. Holders who
surrender their notes for payment as described in the notice of
redemption sent to record holders will receive an amount equal to
$532.91 per $1,000 principal amount at maturity of the notes (the
"Redemption Price"), which represents the "Accreted
Value" thereof through the redemption date. Unless CAI Wireless
defaults in making the redemption payment, the notes will cease to
accrete in value on and after the October 15, 1999 redemption date, and
the only remaining right of the holders will be to receive payment of
the Redemption Price upon surrender to the trustee, as paying agent, of
the notes redeemed.
MCI WorldCom is a global leader in communications services with 1998
revenues of more than $30 billion and established operations in over 65
countries encompassing the Americas, Europe and the Asia-Pacific
regions. MCI WorldCom is a premier provider of facilities-based and
fully integrated local, long distance, international and Internet
services. MCI WorldCom's global networks, including its
state-of-the-art pan-European network and transoceanic cable systems,
provide end-to-end high-capacity connectivity to more than 40,000
buildings worldwide. MCI WorldCom is traded on NASDAQ under WCOM. For
more information on MCI WorldCom, visit the World Wide Web at
http://www.wcom.com.
