The note is repayable over five years with accrued interest, according to a proxy statement filed with the Securities and Exchange Commission.
Ebbers resigned from the Clinton, Miss., communications company on April 29. As part of his separation agreement with WorldCom, the former executive is to receive $1.5 million annually for life along with other benefits.
The principal amount of the note includes $198.7 million paid by WorldCom to Bank of America as repayment for outstanding debt of Ebbers or certain
companies controlled by him that had been guaranteed by WorldCom.
It also includes $36.5 million that WorldCom deposited to collateralize a letter of credit used to support financing to an unrelated third party and $165 million lent to Ebbers by the company.
According to the filing, the first payment by Ebbers under the note is a scheduled $25 million amount on April 29, 2003. Additional payments include $25 million on April 29, 2004, $75 million on April 29, 2005, $100 million on April 29, 2006, and the remaining principal on April 29, 2007.
Ebbers is also to pay interest on the outstanding balance, compounded monthly, on each repayment date at a fluctuating interest rate equal to WorldCom’s rate under a credit facility. This rate was 2.32 percent annually on April 29.
WorldCom said in the filing that Ebbers used the proceeds from the loans principally to repay debt secured by shares of WorldCom’s common stock.
