November 18, 2003 — (WEB HOST INDUSTRY REVIEW) — XO Communications (xo.com) said yesterday
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it had raised $161 million in paid subscriptions for approximately 32.2
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million shares of its new common stock in the initial stage of a rights
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offering priced at $5.00 per share.
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The first stage of the offering ended November 14.
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The Virginia-based broadband and telecommunications provider said it would
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offer the remaining 7.8 million shares from the 40 million shares offered
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at the same price in the second stage of the offering, which is set to
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begin in December.
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XO said the rights offering is being made pursuant to its plan of
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reorganization, and that the proceeds received from the offering would be
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used to lessen existing secured debt.
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XO originally filed for bankruptcy protection in June 2002. The company
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emerged from bankruptcy protection in January 2003.
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In its quarterly earnings announcement earlier this month, XO reported
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that revenue for the third quarter of 2003 decreased by 7.3% compared to
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the third quarter of 2002, and said the market for new telecom services
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remains weak.
