The Company at a Glance
McLeodUSA is one of the nation’s largest independent competitive local exchange carriers. The company provides integrated communications services including local
services in 25 Midwest, Southwest, Northwest and Rocky Mountain states.
McLeodUSA is a facilities-based telecommunications provider with, as of June 30, 2002:
- 43 ATM switches
- 55 voice switches
- 507 collocations
- 526 DSLAMs
- 4,740 employees
McLeodUSA Technology Park
PO Box 3177 * Cedar Rapids, IA
Phone: 319-364-0000 * Toll Free: 800-896-8330
- Chris A. Davis, Chairman of the Board
- Stephen C. Gray, President
- G. Kenneth Burckhardt, Executive Vice President and Chief Financial Officer
The principal elements of our business strategy are to provide voice and data services and outstanding customer service
to small and medium-size businesses and residential customers
across our 25-state footprint.
We derive most of our revenue from our core competitive telecommunications and related communications services, including:
- local and long-distance services;
- dial-up and dedicated Internet access services;
- high-speed Internet access services, such as services using DSL and cable modems;
- bandwidth and network facilities leasing, sales and services, including access services;
- facilities and services dedicated for a particular customer’s use; and
- value-added services such as virtual private networks.
History and Milestones
- The Company was formed in June 1991 as McLeod Telecommunications, Inc. In November 1992, McLeod began providing fiber optic maintenance services for the Iowa Communications Network, a fiber optic network linking state and municipal government and educational facilities throughout the state.
- The Company was reincorporated as McLeod, Inc. in August 1993 as a Delaware corporation. After receiving regulatory approval in December 1993, McLeod began offering local and long distance services to Iowa and Illinois businesses in 1994. in June 1996, McLeod completed an initial public offering of stock.
- From 1996 through 2001, McLeodUSA completed 13 strategic acquisitions to expand its geographic market and broaden its suite of advanced telecommunications products. During this period, the Company also invested heavily in fiber optic network construction and equipment.
- At the Company’s Annual Shareholder Meeting in 1997, shareholders approved changing the Company’s name to McLeodUSA Incorporated.
- In September 1999, McLeodUSA welcomed Forstmann Little & Co. as a long-term strategic partner. Forstmann Little provided a $1 billion infusion of cash, purchasing a 12 percent stake in McLeodUSA.
- Beginning in 2001 and continuing into 2002, McLeodUSA began a divestiture process to identify and sell noncore assets in order to provide a strong foundation for profitable growth in its core CLEC business.
- On August 1, 2001, McLeodUSA appointed Ted Forstmann Chairman of its Executive Committee of the Board and named Chris Davis Chief Operating and Financial Officer. Prior to joining McLeodUSA, Ms. Davis was Executive Vice President, Chief Financial Officer, and a member of the Board of Directors for Gulfstream Aerospace Corporation from May 1993 to April 2000. Before joining Gulfstream in 1993, Ms. Davis spent 17 years at General Electric Company, where she held various managerial and executive positions.
- On October 3, 2001, McLeodUSA announced a strategy for future growth focusing on its 25-state footprint. The Company established five cross-functional teams to strengthen business processes and drive improvements.
- On December 3, 2001, McLeodUSA announced a proposed restructuring plan with Forstmann Little and secured lenders to reduce a significant amount of debt and associated interest payments.
- On January 31, 2002, McLeodUSA reached agreement with a committee of bondholders supporting a recapitalization of the Company to reduce total debt by $3.3 billion through a pre-negotiated Chapter 11 filing. The filing pertained only to the parent company, not to any of its operating subsidiaries. The plan allowed for uninterrupted operation of business with no impact on customers, vendors or employees of the Company.
- On April 5, 2002, just 75 days after beginning the formal restructuring process, McLeodUSA announced that the U.S. Bankruptcy Court had approved its Plan of Reorganization following overwhelming acceptance by over 98% of securities holders entitled to vote on the Plan. The Plan became effective and the Company emerged from Chapter 11 protection on April 16, 2002.
- On April 24, 2002, Forstmann Little and McLeodUSA announced a new senior management team at the Company to execute its post-recapitalization growth strategy. Chris Davis was promoted to chairman and CEO; G. Kenneth Burckhardt was named Executive Vice President & Chief Financial Officer and a director of the Company; and new Group Vice Presidents were named for Finance, IT, Marketing, and Materials Management.