Phone service carrier WorldCom announced Thursday plans to repurchase $667 million worth of debt. The Clinton, Miss.-based company said that it will redeem all 8.875 percent notes due on Jan. 15, 2006 starting Aug. 6 of this year. Holders of these bonds will receive 103.32 percent of the face value amount, plus accrued and unpaid interest of up to $5.18 for every $1,000 worth of bonds redeemed.
WorldCom sold $11.9 billion in bonds last May, the largest ever by a U.S. company, as the phone service carrier strives to improve its financial position and keep spending on its network. WorldCom reported $9.4 billion in capital expenditures during 2000, compared with $7 billion in 1999 and $4.5 billion in 1998.