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THURSDAY MARCH 22
McLeodUSA Hopes Third Time's the Charm McLeodUSA, the twice-bankrupt telephone provider once backed by Theodore Forstmann, is hearing the call of the public markets again. March 2007McLeodUSA, the twice-bankrupt telephone provider once backed by Theodore Forstmann, is hearing the call of the public markets again. On Thursday, the company filed with regulators to raise as much as $172.5 million in an initial public offering. McLeodUSA's predecessor company went public in 1996, and the company has since been through two Chapter 11 reorganizations. McLeodUSA emerged from its second bankruptcy stay in January 2006, with holders of its bank debt owning all of its new stock. Forstmann, whose firm, Forstmann Little, bailed McLeodUSA out of bankruptcy the first time, was wiped out in the latest reorganization and is no longer a shareholder. The company's preliminary prospectus shows that Fidelity Investments is its largest shareholder, with a 30.5% stake. Wayzata Investment Partners is the second largest, with a 28.7% stake. Deutsche Bank and Jefferies & Co are underwriting the IPO.
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