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MCI SELLS FIRST INSTALLMENT OF EQUITY TO BT; PROCEEDS USED TO RETIRE DEBT

 WASHINGTON, June 4 /PRNewswire/ -- MCI Communications Corporation (NASDAQ-NMS: MCIC) today announced that pursuant to its agreement in principle with British Telecommunications plc. (BT), it has sold shares of convertible preferred stock to BT for $830 million. The preferred stock, convertible into 13,736,488 shares, or approximately 5 percent of MCI's common stock, is the first installment of the 20 percent interest in MCI to be acquired by BT, as announced earlier this week.
 MCI will use a portion of the proceeds to redeem on June 21, 1993, the remaining $292 million principal amount of its 10 percent subordinated debentures due April 1, 2011. The redemption price for the 10 percent debentures will be 108 percent of the principal amount thereof, for an aggregate redemption price of $315.36 million, plus accrued interest.
 This redemption will result in an extraordinary charge of approximately $19.3 million after tax that will be recorded in MCI's second quarter.
 This redemption, together with an April 29 announcement of a partial redemption of $135 million of this issue, will result in a total extraordinary charge of approximately $28.3 million after tax that will be recorded in MCI's second quarter. These redemptions are anticipated to result in substantial future savings in interest expense.
 -0- 6/4/93
 /CONTACT: MCI Corporate News Bureau, 800-289-0073 or 202-887-3000/
 (MCIC BTY)


CO: MCI Communications Corporation; British Telecommunications ST: District of Columbia IN: TLS SU:

IH-KD -- DC030 -- 5559 06/04/93 15:50 EDT
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Publication:PR Newswire
Date:Jun 4, 1993
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