RESTON, Va.-XO Communications Inc. said it has received $161 million in paid subscriptions for approximately 32.2 million shares of its new common stock in the first stage of a rights offering that closed last week. The shares were priced at $5 per share.
The company will offer the 7.8 million shares remaining from the initially offered 40 million shares for the same price in a second stage, expected to begin in December. The rights offering is being made pursuant to the company’s Chapter 11 reorganization plan. XO plans to use the proceeds to pay down existing secured debt.
