WorldCom's accounts receivable securitization program bears interest at Libor plus 250 basis points

By Sara Rosenberg

New York, May 29 - WorldCom Inc.'s new $1.5 billion accounts receivable securitization program has an initial interest rate of Libor plus 250 basis points, according to a filing with the Securities and Exchange Commission.

After the company obtains a new credit facility, the interest rate will be 25 basis points higher than the all-in fully drawn rate of the new credit facility, the filing said.

As previously reported, WorldCom 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 new accounts receivable securitization program does not contain any ratings triggers. Citigroup and JPMorgan Chase were the lead banks on the deal.

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