WorldCom hopes to close on $5 billion credit facility within the next few weeks

By Sara Rosenberg

New York, June 14 - WorldCom Inc. anticipates closing on a new $5 billion credit facility within the next few weeks. Originally, the company estimated that the new credit facility would be in place within 30 days of May 9.

The most important thing is that the credit facility "gets done on our terms," WorldCom officials said at the 2002 annual stockholder meeting. The loan needs to be flexible, have good terms and non-restrictive covenants, officials explained, adding that whether the loan closes in June or July is not an important issue.

"We're working hard to secure new bank facilities," said John Sidgmore, president and chief executive officer, at the meeting. "We're working on a $5 billion credit facility, which we are hopeful will close within the next few weeks."

WorldCom officials stated last month that 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.

Also in May, the Clinton, Miss. communications company drew 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.

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