WorldCom Announces Redemption of Series B Convertible Preferred Stock
CLINTON, Miss., August 20, 2001 -- WorldCom, Inc. (NASDAQ:
WCOM, MCIT) today announced that it has elected to redeem on October 1,
2001 (the "Redemption Date"), all outstanding shares of its
Series B Convertible Preferred Stock (the "Series B Preferred
Stock"). On August 17, 2001, there were outstanding approximately
9.1 million shares of Series B Preferred Stock.
On the Redemption Date, each share of Series B Preferred Stock will
be redeemed for $1.00, plus accrued and unpaid dividends of $0.465 per
share. The right of holders of Series B Preferred Stock to convert, at
their option, all or a portion of such shares into shares of common
stock of the Company at a rate of 0.1460868 shares of WorldCom group
common stock and 0.005843472 shares of MCI group common stock for each
share of Series B Preferred Stock will terminate at 5:00 p.m., Eastern
Daylight Time, on September 28, 2001 -- the last business day preceding
the Redemption Date. No fractional shares will be issued upon
conversion. Any fractional interest will be paid in cash.
From and after the Redemption Date, (i) dividends on the Series B
Preferred Stock will cease to accrue, (ii) the Series B Preferred Stock
will no longer be deemed to be outstanding, and (iii) all rights of the
holders of the Series B Preferred Stock will cease (except the right to
receive the redemption price, without interest).
The Company is sending a notice of redemption to the registered
holders of the Series B Preferred Stock, including a Letter of
Transmittal to be used in surrendering certificates for redemption or
conversion. Holders of Series B Preferred Stock will be entitled to
receive a check upon redemption on the Redemption Date, and should
surrender their certificates (together with a properly completed and
executed Letter of Transmittal) to The Bank of New York, as Redemption
and Conversion Agent, at the following address:
By Hand or Overnight Delivery:
The Bank of New York
Tender and Exchange Department
101 Barclay Street
Receive & Deliver Window
New York, NY 10286
By Mail:
The Bank of New York
Tender and Exchange Department
P.O. Box 11248
Church Street Station
New York, NY 10286-1248
All inquiries concerning this redemption should be directed to the
Investor Relations Department of WorldCom, Inc., at 500 Clinton Center
Drive, Clinton, Mississippi 39056 (1-877-624-9266).
About WorldCom, Inc.
WorldCom, Inc. (Nasdaq: WCOM, MCIT) is a preeminent global
communications company for the digital generation, generation d,
operating in more than 65 countries with 2000 revenues of approximately
$35 billion. WorldCom provides the innovative technologies and services
that are the foundation for business in the 21st century. For more
information, go to http://www.worldcom.com.
