MCI Communications Corp. is planning to make the switch -- to $400 million of debt from an equal amount of preferred stock.

The company yesterday issued $400 million of 7.5% senior notes due 2004. The noncallable notes were priced at 99.69 to yield 7.54%, or 90 basis points over comparable Treasuries. Moody's Investors Service rates the offering Baal, while Standard & Poor's Corp. rates it BBB. Merrill Lynch & Co. lead managed the offering.

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