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.