CLINTON, Miss. - April 3, 2002 - WorldCom, Inc. (NASDAQ:WCOM, MCIT) 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."
Holders of the notes who surrender their notes for payment as described in the notice of redemption will receive an amount equal to the principal amount thereof (the "Redemption Price"), plus accrued and unpaid interest on the notes to April 15, 2002.
On and after April 15, 2002, the notes will no longer be deemed to be outstanding, interest on the notes will cease to accrue and holders will have no other rights as holders other than the right to receive payment of the foregoing Redemption Price plus accrued and unpaid interest to April 15, 2002, unless there is a default in such payment.
The notice of redemption is being sent to holders of the notes in accordance with the Indenture. In order to receive the Redemption Price, plus accrued and unpaid interest thereon, the notes must be delivered to Citibank, N.A., the trustee and paying agent, through the facilities of the Depository Trust Company at the office of Citibank, N.A. located at 111 Wall Street, Agency and Trust Services, 15th Floor, New York, NY 10005.
Questions and requests for assistance may be directed to Citibank, N.A., the trustee and paying agent, at 1-800-422-2066.
ABOUT WORLDCOM, INC.
WorldCom, Inc. (NASDAQ: WCOM, MCIT), operating through WorldCom group and MCI group, is a pre-eminent global communications provider for the digital generation, operating in more than 65 countries with annualized revenues of $35 billion. With one of the most expansive, wholly-owned IP networks in the world, WorldCom provides innovative data and Internet services for businesses to communicate in today's market. For more information, go to http://www.worldcom.com.
| Area: | Global |
| Name: | News Bureau |
| Role: | Media Relations |
| Tel: | 800-644-NEWS |
