Verizon to buy back MCI's 5.908% notes due 2007

By Angela McDaniels

Seattle, Jan. 20 - Verizon Communications Inc. said it is offering to repurchase MCI Inc.'s $1.983 billion 5.908% senior notes due 2007 at 101%.

For those noteholders who choose not to accept this offer, Verizon said it expects to satisfy and discharge the indenture governing this series of notes shortly after the close of the offer.

Verizon made an offer on Tuesday to repurchase MCI's $1.983 billion 6.688% senior notes due 2009 and $1.699 billion 7.735% senior notes due 2014 at 101%.

Verizon is required to make the offer to noteholders due to a Jan. 6 change of control and must due so within 30 days of the closing of the merger.

Separately, Verizon said it notified noteholders that MCI is exercising its right to redeem the 6.688% and 7.735% notes prior to maturity. The company will redeem the 6.688% notes on March 1 and the 7.735% notes on Feb. 16.

Citibank NA is the redemption agent.

Verizon said it intends to complete the refinancing of all three series of MCI's long-term debt by the end of the first quarter using a combination of cash and other capital sources.

New York-based Verizon delivers broadband and other communication services.

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