NationsBank Corp. is ready to commit $4 billion to WorldCom Inc. to help fund its $37 billion bid for MCI Communications Corp., according to people familiar with the deal.
While financing for the MCI deal has yet to be completed, sources said Charlotte, N.C.-based NationsBank is the lead institution on WorldCom's existing $5 billion line of credit.
Jackson, Miss.-based WorldCom has drawn $2 billion of that facility, which includes a syndicate of roughly 50 banks.
WorldCom announced plans Monday to pay MCI's shareholders $30 billion in stock. It also said it will pay British Telecommunications PLC about $7 billion in cash for its 20% stake in MCI, including a $450 million breakup fee and $15 million in expenses.
To complete the deal, WorldCom will also need funding to refinance MCI's existing debt.
Salomon Brothers Inc. advised WorldCom on the proposed transaction, which is expected to close in the second quarter of 1998.