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WorldCom plans to have accounts receivables securitization program in place by Thursday
By Sara Rosenberg
New York, May 20 - WorldCom Inc. is still on track with previously announced plans to have a new $1.5 billion accounts receivable securitization program in place by Thursday, May 23, according to a company spokesman. The securitization program is not anticipated to contain any rating triggers, the spokesman added.
On May 9, WorldCom Inc. received a waiver, which expires May 23, on its accounts receivable securitization program, tabling any debt trigger effect and rendering the Moody's Investors Service senior unsecured issuer rating downgrade to Ba2 from Baa2 harmless against the securitization program, bonds and bank loans, according to a company press release.
In addition to the securitization program, the company is hoping to obtain a $2.65 billion secured credit facility maturing in June 2005 and a $2.35 billion secured credit facility maturing in June 2006. The purpose of the $5 billion in new loans is to give people more confidence in WorldCom's liquidity.
On May 15, WorldCom announced intentions to draw down its $2.65 billion credit facility. In order to be able to exercise the term-out option until June 2003 on the credit facility, the company must draw down the entire amount, officials explained.
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