MCI releases terms of $5.67 billion in new notes

By Jeff Pines

Washington, April 21 - MCI, Inc., which emerged from Chapter 11 Tuesday, released the details of the $5.67 billion in three-year, five-year and 10-year notes it issued to creditors.

The issuance was part of the Ashburn, Va.-based telecommunications provider's reorganization plan. The notes are senior, unsecured obligations of the company.

The coupons may be adjusted, depending on the ratings received from Moody's Investors Service and Standard & Poor's.

The details are below:

Three-year notes

Issuer:	MCI, Inc.
Issue:	Senior notes
Amount:	$1.983 billion
Maturity:	May 1, 2007
Coupon:	5.908%
Call:	Make-whole call at Treasuries plus 133.1 bps until May 1, 2005, then 102.454, declining to par in May 2006
Settlement:	April 20
Five-year notes
Issuer:	MCI, Inc.
Issue:	Senior notes
Amount:	$1.983 billion
Maturity:	May 1, 2009
Coupon:	6.688%
Call:	Make-whole call at Treasuries plus 22.9 bps until May 1, 2006, then 102.844, declining to par in May 2008
Settlement:	April 20
Ten-year notes
Issuer:	MCI, Inc.
Issue:	Senior notes
Amount:	$1.699 billion
Maturity:	May 1, 2014
Coupon:	7.735%
Call:	Make-whole call at Treasuries plus 84.5 bps until May 1, 2009, then 103.3675, declining to par in May 2012
Settlement:	April 20

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