According to XO, preliminary figures show that approximately 39.7 million shares were purchased in the offering, resulting in the total yield of $198.6 million. The company said the proceeds will be used to reduce its outstanding debt.
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“XO is extremely pleased at the results of the rights offering,” said CEO Carl Grivner. “Our unrivaled network assets and strong balance sheet help to demonstrate XO’s commitment to meeting the communications needs of businesses in both the near and long term. The investor confidence evidenced by the rights offering provides additional motivation to aggressively implement our business plan on all fronts.”
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Grivner said the company had been given a large vote of confidence by its largest stockholder, financier Carl Icahn, whose companies purchased over 7 million shares for over $35 million. As a result, Icahn’s entities will own in excess of 62 percent of XO’s outstanding common stock after distribution of the rights shares.
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Icahn made an aggressive bid to acquire rival carrier Global Crossing last summer.
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According to XO, the rights offering was mandated in the company’s Chapter 11 plan of reorganization. XO emerged from bankruptcy approximately one year ago.
