-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LhVVlhhATUsetjaKqSkO0tBBk1aI8ZwRtXsi0+O4ao1wMrNDCIqifAnpJAVLYmw5 PxpkmSMxlAsJUAm7iJfLVA== 0000909518-03-000612.txt : 20030822 0000909518-03-000612.hdr.sgml : 20030822 20030821183824 ACCESSION NUMBER: 0000909518-03-000612 CONFORMED SUBMISSION TYPE: SC TO-C PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20030822 GROUP MEMBERS: BUSINESS INTERNET, INC. GROUP MEMBERS: INTERMEDIA COMMUNICATIONS INC. GROUP MEMBERS: INTERMEDIA INVESTMENT, INC. FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: WORLDCOM INC CENTRAL INDEX KEY: 0000723527 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 581521612 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC TO-C BUSINESS ADDRESS: STREET 1: 500 CLINTON CENTER DRIVE CITY: CLINTON STATE: MS ZIP: 39056 BUSINESS PHONE: 6014605600 FORMER COMPANY: FORMER CONFORMED NAME: MCI WORLDCOM INC DATE OF NAME CHANGE: 19980914 FORMER COMPANY: FORMER CONFORMED NAME: WORLDCOM INC /GA/ DATE OF NAME CHANGE: 19970127 FORMER COMPANY: FORMER CONFORMED NAME: LDDS COMMUNICATIONS INC /GA/ DATE OF NAME CHANGE: 19930916 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: DIGEX INC/DE CENTRAL INDEX KEY: 0001085098 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 593582217 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC TO-C SEC ACT: 1934 Act SEC FILE NUMBER: 005-57127 FILM NUMBER: 03861079 BUSINESS ADDRESS: STREET 1: DIGEX, INC STREET 2: 14400 SWEITZER LANE CITY: LAUREL STATE: MD ZIP: 20707 BUSINESS PHONE: 2402642000 MAIL ADDRESS: STREET 1: 12050 BALTIMORE AVE CITY: BELTSVILLE STATE: MD ZIP: 20705 SC TO-C 1 mv8-21_to.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------- SCHEDULE TO (RULE 14D-100) TENDER OFFER STATEMENT UNDER SECTION 14(D)(1) OR 13(E)(1) OF THE SECURITIES EXCHANGE ACT OF 1934 DIGEX, INCORPORATED - -------------------------------------------------------------------------------- (Name of Subject Company (Issuer)) WORLDCOM, INC. INTERMEDIA COMMUNICATIONS INC. BUSINESS INTERNET, INC. INTERMEDIA INVESTMENT, INC. - -------------------------------------------------------------------------------- (Names of Filing Persons (Offeror and Other Persons)) CLASS A COMMON STOCK, PAR VALUE $.01 PER SHARE - -------------------------------------------------------------------------------- (Title of Class of Securities) 253756 100 - -------------------------------------------------------------------------------- (CUSIP Number of Class of Securities) ANASTASIA KELLY SECRETARY WORLDCOM, INC. 22001 LOUDOUN COUNTY PARKWAY ASHBURN, VA 20147 (703) 886-5600 - -------------------------------------------------------------------------------- (Name, Address and Telephone Numbers of Person Authorized to Receive Notices and Communications on Behalf of Filing Persons) Copies to: FREDERICK S. GREEN, ESQ./STEVEN D. RUBIN, ESQ. WEIL, GOTSHAL & MANGES, LLP 767 FIFTH AVENUE NEW YORK, NY 10153 (212) 310-8000 CALCULATION OF FILING FEE - ----------------------------------------- -------------------------------------- Transaction Valuation* Amount of Filing Fee* not applicable not applicable - ----------------------------------------- -------------------------------------- * As the filing contains only preliminary communications made before the commencement of the tender offer, no filing fee is required. [ ] Check the box if any part of the fee is offset as provided by Rule 0-11(a) (2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. Amount Previously Paid: Not applicable Filing Party: Not applicable Form or Registration No.: Not applicable Date Filed: Not applicable [X] Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer. Check the appropriate boxes below to designate any transactions to which the statement relates: [X] third-party tender offer subject to Rule 14d-1. [ ] issuer tender offer subject to Rule 13e-4. [X] going-private transaction subject to Rule 13e-3. [X] amendment to Schedule 13D under Rule 13d-2. Check the following box if the filing is a final amendment reporting the results of the tender offer: [ ] ---------------------------------------------- This Tender Offer Statement on Schedule TO is filed by WorldCom, Inc. ("WorldCom"). Pursuant to General Instruction D to Schedule TO, this Schedule TO relates to pre-commencement communications by WorldCom, Intermedia Communications Inc. ("Intermedia"), Business Internet, Inc. ("Business Internet") and Intermedia Investment, Inc. ("Intermedia Investment"). WorldCom has not yet commenced the offer that is referred to in this communication. Upon commencement of such offer, WorldCom, Intermedia, Business Internet and Intermedia Investment will file with the Securities and Exchange Commission a Schedule TO and related exhibits, including an Offer to Purchase, the Letter of Transmittal and other related documents. Stockholders are strongly encouraged to read the Schedule TO and related exhibits, including the Offer to Purchase, the Letter of Transmittal and other related documents, when these become available because they will contain important information about the offer. The Schedule TO and related exhibits will be available without charge at the Securities and Exchange Commission website at http://www.sec.gov and will be delivered without charge to all stockholders of Digex, Incorporated. ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. 1) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO 13D-1(A) AND AMENDMENTS THERETO FILED PURSUANT TO 13D-2(A) DIGEX, INCORPORATED - -------------------------------------------------------------------------------- (Name of Issuer) CLASS A COMMON STOCK, PAR VALUE $0.01 PER SHARE CLASS B COMMON STOCK, PAR VALUE $0.01 PER SHARE - -------------------------------------------------------------------------------- (Title of Class of Securities) CLASS A COMMON STOCK: 253756 10 0 CLASS B COMMON STOCK: 369385 20 8 - -------------------------------------------------------------------------------- (CUSIP Number) ANASTASIA KELLY SECRETARY WORLDCOM, INC. 22001 LOUDOUN COUNTY PARKWAY ASHBURN, VA 20147 (703) 886-5600 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) AUGUST 21, 2003 - -------------------------------------------------------------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box: [ ] (Continued on following pages) (Page 1 of 9 Pages) ================================================================================
- ---------------------------------------------- -------------------------------------- CLASS A COMMON STOCK: 253756 10 0 SCHEDULE 13D PAGE 2 OF 9 PAGES CLASS B COMMON STOCK: 369385 20 8 - ---------------------------------------------- -------------------------------------- - ------------- -------------------------------------------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) WORLDCOM, INC. 58-1521612 - ------------- ------------------------------------------------------------------------------------------------------ ------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - ------------- -------------------------------------------------------------------------------------------------------------------- 3. SEC USE ONLY - ------------- -------------------------------------------------------------------------------------------------------------------- 4. SOURCES OF FUNDS CLASS A COMMON STOCK: WC, OO CLASS B COMMON STOCK: OO - ------------- ------------------------------------------------------------------------------------------------------ ------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [X] - ------------- -------------------------------------------------------------------------- ----------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION GEORGIA - --------------------------- ---------- ------------------------------------------------------------------------------------------- NUMBER OF SHARES 7. SOLE VOTING POWER CLASS A COMMON STOCK: 39,350,000(1) CLASS B COMMON STOCK: 39,350,000(2) ---------- ------------------------------------------------------------------------------------------- BENEFICIALLY OWNED BY 8. SHARED VOTING POWER NONE ---------- ------------------------------------------------------------------------------------------- EACH REPORTING 9. SOLE DISPOSITIVE POWER CLASS A COMMON STOCK: 39,350,000(1) CLASS B COMMON STOCK: 39,350,000(2) ---------- ------------------------------------------------------------------------------------------- PERSON WITH 10. SHARED DISPOSITIVE POWER CLASS A COMMON STOCK: 730,995(3) - ------------- -------------------------------------------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON CLASS A COMMON STOCK: 40,080,995(4) CLASS B COMMON STOCK: 39,350,000(2) - ------------- ------------------------------------------------------------------------------------------------------ ------------- 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS BEFORE FILLING OUT) [ ] - ------------- -------------------------------------------------------------------------------------------------------------------- 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) CLASS A COMMON STOCK: 61.1%(4) CLASS B COMMON STOCK: 100.0%(2) - ------------- -------------------------------------------------------------------------- ----------------------------------------- 14. TYPE OF REPORTING PERSON CO - ------------- -------------------------------------------------------------------------- ----------------------------------------- (1) Represents shares of Class A Common Stock if shares of Class B Common Stock are converted. (2) Represents shares of Class B Common Stock held of record by Intermedia Investment, Inc., a wholly owned subsidiary of Business Internet, Inc., which is a wholly owned subsidiary of Intermedia Communications Inc., which is a directly owned subsidiary of WorldCom. (3) Represents shares of Class A Common Stock issuable upon conversion of 50,000 shares of Series A Convertible Preferred Stock owned directly by HPQ Holdings, LLC, a wholly owned subsidiary of Hewlett-Packard Company, which shares WorldCom has agreed to purchase pursuant to the terms of a Stock Purchase Agreement dated July 23, 2003, by and among WorldCom, Hewlett-Packard and HPQ Holdings. So long as the Stock Purchase Agreement is in effect, HPQ is prohibited from selling or otherwise transferring the Series A Convertible Preferred Stock. The acquisition by WorldCom of the Series A Convertible Preferred Stock remains subject to certain conditions. (See Items 4, 5 and 6 of this Schedule 13D). (4) Includes shares of Class A Common Stock if shares of Class B Common Stock are converted and shares of Class A Common Stock issuable upon conversion of 50,000 shares of Series A Convertible Preferred Stock owned by HPQ Holdings, LLC. See notes (1) and (3) above. 2 - ---------------------------------------------- -------------------------------------- CLASS A COMMON STOCK: 253756 10 0 SCHEDULE 13D PAGE 3 OF 9 PAGES CLASS B COMMON STOCK: 369385 20 8 - ---------------------------------------------- -------------------------------------- - ------------- -------------------------------------------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) INTERMEDIA COMMUNICATIONS INC. 59-2913586 - ------------- ------------------------------------------------------------------------------------------------------ ------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - ------------- -------------------------------------------------------------------------------------------------------------------- 3. SEC USE ONLY - ------------- -------------------------------------------------------------------------------------------------------------------- 4. SOURCES OF FUNDS CLASS A COMMON STOCK: OO CLASS B COMMON STOCK: OO - ------------- ------------------------------------------------------------------------------------------------------ ------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [X] - ------------- -------------------------------------------------------------------------- ----------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - --------------------------- ---------- ------------------------------------------------------------------------------------------- NUMBER OF SHARES 7. SOLE VOTING POWER CLASS A COMMON STOCK: 39,350,000(1) CLASS B COMMON STOCK: 39,350,000(2) ---------- ------------------------------------------------------------------------------------------- BENEFICIALLY OWNED BY 8. SHARED VOTING POWER NONE ---------- ------------------------------------------------------------------------------------------- EACH REPORTING 9. SOLE DISPOSITIVE POWER CLASS A COMMON STOCK: 39,350,000(1) CLASS B COMMON STOCK: 39,350,000(2) ---------- ------------------------------------------------------------------------------------------- PERSON WITH 10. SHARED DISPOSITIVE POWER NONE - ------------- -------------------------------------------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON CLASS A COMMON STOCK: 39,350,000(1) CLASS B COMMON STOCK: 39,350,000(2) - ------------- ------------------------------------------------------------------------------------------------------ ------------- 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS BEFORE FILLING OUT) [ ] - ------------- -------------------------------------------------------------------------------------------------------------------- 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) CLASS A COMMON STOCK: 60.7%(1) CLASS B COMMON STOCK: 100.0%(2) - ------------- -------------------------------------------------------------------------- ----------------------------------------- 14. TYPE OF REPORTING PERSON CO - ------------- -------------------------------------------------------------------------- ----------------------------------------- (1) Represents shares of Class A Common Stock if shares of Class B Common Stock are converted. (2) Represents shares of Class B Common Stock held of record by Intermedia Investment, Inc., a wholly owned subsidiary of Business Internet, Inc., which is a wholly owned subsidiary of Intermedia Communications Inc. 3 - ---------------------------------------------- -------------------------------------- CLASS A COMMON STOCK: 253756 10 0 SCHEDULE 13D PAGE 4 OF 9 PAGES CLASS B COMMON STOCK: 369385 20 8 - ---------------------------------------------- -------------------------------------- - ------------- -------------------------------------------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) BUSINESS INTERNET, INC. 52-1986462 - ------------- ------------------------------------------------------------------------------------------------------ ------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - ------------- -------------------------------------------------------------------------------------------------------------------- 3. SEC USE ONLY - ------------- -------------------------------------------------------------------------------------------------------------------- 4. SOURCES OF FUNDS CLASS A COMMON STOCK: OO CLASS B COMMON STOCK: OO - ------------- ------------------------------------------------------------------------------------------------------ ------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [X] - ------------- -------------------------------------------------------------------------- ----------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - --------------------------- ---------- ------------------------------------------------------------------------------------------- NUMBER OF SHARES 7. SOLE VOTING POWER CLASS A COMMON STOCK: 39,350,000(1) CLASS B COMMON STOCK: 39,350,000(2) ---------- ------------------------------------------------------------------------------------------- BENEFICIALLY OWNED BY 8. SHARED VOTING POWER NONE ---------- ------------------------------------------------------------------------------------------- EACH REPORTING 9. SOLE DISPOSITIVE POWER CLASS A COMMON STOCK: 39,350,000(1) CLASS B COMMON STOCK: 39,350,000(2) ---------- ------------------------------------------------------------------------------------------- PERSON WITH 10. SHARED DISPOSITIVE POWER NONE - ------------- -------------------------------------------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON CLASS A COMMON STOCK: 39,350,000(1) CLASS B COMMON STOCK: 39,350,000(2) - ------------- ------------------------------------------------------------------------------------------------------ ------------- 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS BEFORE FILLING OUT) [ ] - ------------- -------------------------------------------------------------------------------------------------------------------- 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) CLASS A COMMON STOCK: 60.7%(1) CLASS B COMMON STOCK: 100.0%(2) - ------------- -------------------------------------------------------------------------- ----------------------------------------- 14. TYPE OF REPORTING PERSON CO - ------------- -------------------------------------------------------------------------- ----------------------------------------- (1) Represents shares of Class A Common Stock if shares of Class B Common Stock are converted. (2) Represents shares of Class B Common Stock held of record by Intermedia Investment, Inc., which is a wholly owned subsidiary of Business Internet, Inc. 4 - ---------------------------------------------- -------------------------------------- CLASS A COMMON STOCK: 253756 10 0 SCHEDULE 13D PAGE 5 OF 9 PAGES CLASS B COMMON STOCK: 369385 20 8 - ---------------------------------------------- -------------------------------------- - ------------- -------------------------------------------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) INTERMEDIA INVESTMENT, INC. 59-3677137 - ------------- ------------------------------------------------------------------------------------------------------ ------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - ------------- -------------------------------------------------------------------------------------------------------------------- 3. SEC USE ONLY - ------------- -------------------------------------------------------------------------------------------------------------------- 4. SOURCES OF FUNDS CLASS A COMMON STOCK: OO CLASS B COMMON STOCK: OO - ------------- ------------------------------------------------------------------------------------------------------ ------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [X] - ------------- -------------------------------------------------------------------------- ----------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - --------------------------- ---------- ------------------------------------------------------------------------------------------- NUMBER OF SHARES 7. SOLE VOTING POWER CLASS A COMMON STOCK: 39,350,000(1) CLASS B COMMON STOCK: 39,350,000 ---------- ------------------------------------------------------------------------------------------- BENEFICIALLY OWNED BY 8. SHARED VOTING POWER NONE ---------- ------------------------------------------------------------------------------------------- EACH REPORTING 9. SOLE DISPOSITIVE POWER CLASS A COMMON STOCK: 39,350,000(1) CLASS B COMMON STOCK: 39,350,000 ---------- ------------------------------------------------------------------------------------------- PERSON WITH 10. SHARED DISPOSITIVE POWER NONE - ------------- -------------------------------------------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON CLASS A COMMON STOCK: 39,350,000(1) CLASS B COMMON STOCK: 39,350,000 - ------------- ------------------------------------------------------------------------------------------------------ ------------- 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS BEFORE FILLING OUT) [ ] - ------------- -------------------------------------------------------------------------------------------------------------------- 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) CLASS A COMMON STOCK: 60.7%(1) CLASS B COMMON STOCK: 100.0% - ------------- -------------------------------------------------------------------------- ----------------------------------------- 14. TYPE OF REPORTING PERSON CO - ------------- -------------------------------------------------------------------------- -----------------------------------------
(1) Represents shares of Class A Common Stock if shares of Class B Common Stock are converted. 5 - --------------------------------- -------------------------- CLASS A COMMON STOCK: 253756 10 0 SCHEDULE 13D PAGE 6 OF 9 PAGES CLASS B COMMON STOCK: 369385 20 8 - --------------------------------- -------------------------- ITEM 1. SECURITY AND ISSUER This statement constitutes Amendment No. 1 ("Amendment No. 1") to the Statement on Schedule 13D (the "Schedule 13D") filed with the Securities and Exchange Commission by WorldCom, Inc. ("WorldCom") for and on behalf of itself, Intermedia Communications Inc. ("Intermedia"), Business Internet, Inc. ("Business Internet") and Intermedia Investment, Inc. ("Intermedia Investment" and, collectively with WorldCom, Intermedia and Business Internet, the "Reporting Persons"). This statement relates to the Class A Common Stock, par value $.01 per share (the "Class A Stock"), of Digex, Incorporated ("Digex"). Digex's principal executive offices are located at 14400 Sweitzer Lane, Laurel, MD 20707. Unless otherwise set forth herein, the information set forth in the Schedule 13D remains unchanged. Unless otherwise indicated, all capitalized terms used herein have the meanings ascribed to them in the Schedule 13D. ITEM 2. IDENTITY AND BACKGROUND On August 19, 2003, Anastasia Kelly was named Executive Vice President, General Counsel and Secretary of WorldCom. Her current business address is WorldCom, Inc., 22001 Loudoun County Parkway, Ashburn, VA 20147. She is a citizen of the United States. During the past five years, Ms. Kelly has not had any criminal convictions or been party to a civil proceeding of a judicial or administrative body of competent jurisdiction and, as a result of such proceedings, was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws or finding any violation with respect to such laws. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION The Bankruptcy Court authorized and approved the Stock Purchase Agreement, including the payment of the purchase price, on August 5, 2003. Such authorization and approval is subject to the condition that WorldCom successfully consummate its tender offer for the shares of Class A Stock, including satisfaction of the Minimum Condition. ITEM 4. PURPOSE OF TRANSACTION On July 25, 2003, the Special Committee met telephonically to discuss WorldCom's proposal with their advisors and members of Digex senior management. The Special Committee asked its financial advisor to review the terms of the proposal and report back with their preliminary views on the financial terms of the proposal. On July 29, 2003, the Special Committee again met telephonically with their advisors and members of Digex senior management to discuss the proposal. At that meeting, the financial advisor made a presentation to the Special Committee regarding the proposal. Members of the Special Committee discussed various aspects of the proposal. At the conclusion of the meeting, the Special Committee determined that it should seek to have WorldCom increase its offer. On July 30, 2003, the Chairman of the Special Committee contacted WorldCom and WorldCom received a letter from the Special Committee requesting that WorldCom consider increasing the proposed per share purchase price in the tender offer. 6 - --------------------------------- -------------------------- CLASS A COMMON STOCK: 253756 10 0 SCHEDULE 13D PAGE 7 OF 9 PAGES CLASS B COMMON STOCK: 369385 20 8 - --------------------------------- -------------------------- Following receipt of the letter and further discussions with the Special Committee, WorldCom informed the Special Committee that, subject to the approval of the statutory committee of unsecured creditors and the Bankruptcy Court's authorization and approval, WorldCom would increase the offer price to $0.80 per share if the Special Committee agreed to recommend the offer to the stockholders of Digex. At a meeting on August 5, 2003, the Special Committee considered WorldCom's proposal and preliminarily decided to recommend the tender offer at the proposed price per share of $0.80. On August 5, 2003, the Bankruptcy Court authorized and approved WorldCom's acquisition of the outstanding shares of Series A Preferred Stock pursuant to the Stock Purchase Agreement, subject to the conditions set forth therein, including the condition that WorldCom successfully consummate its tender offer for the shares of Class A Stock in satisfaction of the Minimum Condition. On such date, the Bankruptcy Court also authorized and approved WorldCom's acquisition of the outstanding shares of Class A Stock, other than such shares owned by the Reporting Persons, pursuant to a tender offer. Such authorization and approval was for the payment of a purchase price of $0.70 per share in the tender offer. Based upon the communication from the Special Committee, on the date hereof WorldCom made an oral application with the Bankruptcy Court seeking its authorization and approval for the payment of a purchase price of $0.80 per share in the tender offer. A copy of the requested Order Fixing A Time and Date for Hearing to Consider Entry of Amended Order Pursuant to Section 363 of the Bankruptcy Code Authorizing Acquisition of Digex, Incorporated is filed as Exhibit 1 hereto and incorporated by reference. Any communications regarding the potential tender offer will be filed with the SEC on Schedule TO as "pre-commencement communications" to a tender offer. WorldCom's offer, if and when made, would involve required filings with the SEC and the mailing of appropriate materials to the public stockholders of Digex. Digex's stockholders should read the tender offer statement on Schedule TO (including a "going private" statement on Schedule 13E-3) to be filed by WorldCom, as it will contain important information about the tender offer. When it becomes available, stockholders can obtain such tender offer statement on Schedule TO free of charge from the SEC's website at http://www.sec.gov or from WorldCom by directing a request to WorldCom, Inc., 22001 Loudoun County Parkway, Ashburn VA 20147. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER The Bankruptcy Court authorized and approved the Stock Purchase Agreement, including the payment of the purchase price, on August 5, 2003. The acquisition remains subject to the conditions set forth in the Stock Purchase Agreement, including the condition described in Items 3 and 4 hereof. After completing the acquisition of the Series A Preferred Stock, WorldCom will beneficially own 50,000 shares of Series A Preferred Stock, representing 100.0% of the presently outstanding shares of Series A Preferred Stock. After completing the purchase of the Series A Preferred Stock, WorldCom will have the sole power to vote or direct the vote and the sole power to dispose or direct the disposition of the 50,000 shares of the Series A Preferred Stock WorldCom will own beneficially after the purchase. To the best knowledge of WorldCom, Intermedia, Business Internet and Intermedia Investment, as of the date hereof Anastasia Kelly does not beneficially own any shares of Class A Stock or Class B Stock and she has not effected any transactions in shares of Class A Stock or Class B Stock during the past 60 days. 7 - --------------------------------- -------------------------- CLASS A COMMON STOCK: 253756 10 0 SCHEDULE 13D PAGE 8 OF 9 PAGES CLASS B COMMON STOCK: 369385 20 8 - --------------------------------- -------------------------- ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER The Bankruptcy Court authorized and approved the Stock Purchase Agreement, including the payment of the purchase price, on August 5, 2003. The acquisition remains subject to the conditions set forth in the Stock Purchase Agreement, including the condition described in Items 3 and 4 hereof. The shares of stock and other equity interests owned by WorldCom in each of Intermedia, Business Internet, Intermedia Investment and Digex, including the shares of Class B Stock beneficially owned by the Reporting Persons, are pledged as security for the obligations of each of the Reporting Persons under the $1,100,000,000 Amended and Restated Senior Secured Superpriority Debtor-in-Possession Credit Agreement dated as of October 15, 2002, as amended, among the Reporting Persons and the other parties thereto. ITEM 7. MATERIALS TO BE FILED AS EXHIBITS 1. Requested Order Fixing A Time and Date for Hearing to Consider Entry of Amended Order Pursuant to Section 363 of the Bankruptcy Code Authorizing Acquisition of Digex, Incorporated. 8 - --------------------------------- -------------------------- CLASS A COMMON STOCK: 253756 10 0 SCHEDULE 13D PAGE 9 OF 9 PAGES CLASS B COMMON STOCK: 369385 20 8 - --------------------------------- -------------------------- SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: August 21, 2003 WORLDCOM, INC. By: /s/ Robert T. Blakely -------------------------------------------- Name: Robert T. Blakely Title: Executive Vice President and Chief Financial Officer INTERMEDIA COMMUNICATIONS INC. By: /s/ Paul M. Eskildsen -------------------------------------------- Name: Paul M. Eskildsen Title: Secretary BUSINESS INTERNET, INC. By: /s/ Paul M. Eskildsen -------------------------------------------- Name: Paul M. Eskildsen Title: Secretary INTERMEDIA INVESTMENT, INC. By: /s/ Paul M. Eskildsen -------------------------------------------- Name: Paul M. Eskildsen Title: Secretary 9 EX-99 3 mv8-21_exhibit1.txt EXHIBIT 1 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK - --------------------------------------------X IN RE : : CHAPTER 11 CASE NO. WORLDCOM, INC., ET AL., : 02-13533 (AJG) : : (JOINTLY ADMINISTERED) DEBTORS. - --------------------------------------------X ORDER FIXING A TIME AND DATE FOR HEARING TO CONSIDER ENTRY OF AMENDED ORDER PURSUANT TO SECTION 363 OF THE BANKRUPTCY CODE AUTHORIZING ACQUISITION OF DIGEX, INCORPORATED ---------------------------------------------- Upon the oral application of WorldCom, Inc. and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively, the "Debtors") seeking entry of an amended order pursuant to section 363 of title 11 of the United States Code (the "Bankruptcy Code") authorizing the acquisition of Digex, Incorporated (the "Amended Order"), a copy of which is annexed hereto as Exhibit A; and upon due deliberation, and good and sufficient cause appearing therefor, it is hereby ORDERED that a hearing to consider entry of the Amended Order shall be held before Honorable Arthur J. Gonzalez, United States Bankruptcy Judge, in Room 523 of the United States Bankruptcy Court, Alexander Hamilton Custom House, One Bowling Green, New York, New York, 10004, on August 26, 2003, at 10:00 a.m. (Eastern Time) (the "Hearing"), or as soon thereafter as counsel may be heard; and it is further ORDERED that on or before August 22, 2003, the Debtors shall electronically serve a copy of this Order, the form of notice annexed hereto as Exhibit B, and the Amended Order upon each of the parties listed on the master service list maintained in the Debtors' chapter 11 cases, and such service shall be deemed good and sufficient service and notice of this Order, the Amended Order, the Hearing and all proceedings to be held thereon; and it is further ORDERED that responses or objections to the entry of the Amended Order, if any, must be in writing, shall conform to the Federal Rules of Bankruptcy Procedure and the Local Rules of the Bankruptcy Court, and shall be filed with the Bankruptcy Court electronically in accordance with General Order M-242 (General Order M-242 and the User's Manual for the Electronic Case Filing System can be found at www.nysb.uscourts.gov), by registered users of the Bankruptcy Court's case filing system and, by all other parties in interest, on a 3.5 inch disk, preferably in Portable Document Format (PDF), WordPerfect or any other Windows-based word processing format (with a hard-copy delivered directly to Chambers), and shall be served in accordance with General Order M-242 upon (i) the Debtors, 1133 19th Street, Washington, D.C. 20036, Attention: Anastasia Kelly, Esq., General Counsel, (ii) Weil, Gotshal & Manges LLP, 767 Fifth Avenue, New York, New York 10153, Attention: Lori R. Fife, Esq., attorneys for the Debtors; (iii) the Office of the United States Trustee for the Southern District of New York, 33 Whitehall Street, 21st floor, New York, New York 10004, Attention: Mary Elizabeth Tom, Esq.; (iv) Akin Gump Strauss Hauer & Feld, LLP, 590 Madison Avenue, New York, New York 10022, Attention: Daniel Golden, Esq., attorneys for the statutory committee of creditors; (v) Kirkpatrick & Lockhart LLP, 1800 Massachusetts Avenue, Washington, DC 20036, Attention: Richard Thornburgh, Esq. attorneys for the examiner in these chapter 11 cases; and (e) Shearman & Sterling, 599 Lexington Avenue, New York, New York 10022, Attention: Douglas Bartner, Esq. attorneys for the Debtors' postpetition lenders, and shall be filed with the Clerk of the United States Bankruptcy Court for the Southern 2 District of New York, in each case so as to be received no later than August 25, 2003, at 9:00 a.m. (Eastern Time). Dated: New York, New York August __, 2003 -------------------------------------- UNITED STATES BANKRUPTCY JUDGE 3 EXHIBIT A UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK - -----------------------------------------X IN RE : : CHAPTER 11 CASE NO. WORLDCOM, INC., ET AL., : 02-13533 (AJG) : : (JOINTLY ADMINISTERED) DEBTORS. : - -----------------------------------------X AMENDED ORDER PURSUANT TO SECTION 363 OF THE BANKRUPTCY CODE AUTHORIZING ACQUISITION OF DIGEX, INCORPORATED ---------------------------------- Upon the motion, dated July 24, 2003 (the "Motion"), of WorldCom, Inc. and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively, the "Debtors"), for an order, pursuant to section 363 of title 11 of the United States Code (the "Bankruptcy Code") authorizing the acquisition of Digex, Incorporated, all as more fully set forth in the Motion; and the Court having jurisdiction to consider the Motion and the relief requested therein pursuant to 28 U.S.C. ss.ss. 157 and 1334; and consideration of the Motion and the relief requested therein being a core proceeding pursuant to 28 U.S.C. ss. 157(b); and venue being proper before this Court pursuant to 28 U.S.C. ss.ss. 1408 and 1409; and due and proper notice of the Motion having been provided, and no other or further notice need be provided; and the relief requested in the Motion being in the best interests of the Debtors and their estates and creditors; and the Court having reviewed the Motion and having heard the statements in support of the relief requested therein at a hearing before the Court (the "Hearing"); and the Court having determined that the legal and factual bases set forth in the Motion and at the Hearing establish just cause for the relief granted herein; and upon all of the proceedings had before the 4 Court and after due deliberation and sufficient cause appearing therefor, it is ORDERED that the Motion is granted; and it is further ORDERED that, pursuant to section 363 of the Bankruptcy Code, the Debtors are authorized to enter into the Stock Purchase Agreement(1); and it is further ORDERED that the Debtors are authorized to commence the Tender Offer for the Publicly Traded Shares and to acquire such shares for cash in the amount of $0.80 per share; and it is further ORDERED that, upon acquisition of the Preferred Stock and the Publicly Traded Shares, or necessary portion thereof, the Debtors are authorized to implement the Merger between Intermedia Investment and Digex; and it is further ORDERED that the Debtors are authorized to execute all documents and take all actions necessary or appropriate in furtherance of the Stock Purchase Agreement, the Tender Offer, and the Merger; and it is further ORDERED that, following consummation of the Tender Offer and the Merger, WorldCom, Inc. will have an administrative claim pursuant to section 503 of the Bankruptcy Code against Intermedia and its subsidiaries (the "Administrative Claim") in an amount equal to the sum of (i) the purchase price of the Preferred Stock, (ii) the purchase price for the Publicly Traded Shares (whether acquired pursuant to the Tender Offer or otherwise), and (iii) any other related costs; provided, however, that to the extent the Plan is confirmed by the Court, upon confirmation of the Plan, the Administrative Claim shall be deemed satisfied and no further obligations shall be due and owing on account of - ----------------- (1) Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Motion. 5 such claim; provided further, however, that in the event the Plan is not confirmed by the Court, nothing herein shall preclude the unofficial committee of noteholders of Intermedia Communications Inc. from objecting to the amount of the Administrative Claim under section 503 of the Bankruptcy Code; and it is further ORDERED that this Order shall be effective and enforceable immediately upon entry of this Order, pursuant to Fed. R. Bankr. P. 6004(g); and it is further ORDERED that the requirement under Rule 9013-1(b) of the Local Bankruptcy Rules for the Southern District of New York for the filing of a memorandum of law is waived. Dated: New York, New York August __, 2003 ----------------------------------- UNITED STATES BANKRUPTCY JUDGE 6 EXHIBIT B HEARING DATE AND TIME: AUGUST 26, 2003 @ 10:00 A.M. OBJECTION DEADLINE: AUGUST 25, 2003 @ 9:00 A.M. WEIL, GOTSHAL & MANGES LLP Attorneys for Debtors and Debtors in Possession 767 Fifth Avenue New York, NY 10153-0119 Telephone: (212) 310-8000 Facsimile: (212) 310-8007 Marcia L. Goldstein, Esq. (MG 2606) Lori R. Fife, Esq. (LF 2839) Alfredo R. Perez, Esq. UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK - -------------------------------------------X : IN RE : : CHAPTER 11 CASE NO. WORLDCOM, INC., ET AL., : 02-13533 (AJG) : : (JOINTLY ADMINISTERED) DEBTORS. : - -------------------------------------------x NOTICE OF HEARING REGARDING ENTRY OF AMENDED ORDER PURSUANT TO SECTION 363 OF THE BANKRUPTCY CODE AUTHORIZING ACQUISITION OF DIGEX, INCORPORATED --------------------------------------------------- PLEASE TAKE NOTICE that a hearing will be held before the Honorable Arthur J. Gonzalez, United States Bankruptcy Judge, in Room 523 of the United States Bankruptcy Court, Alexander Hamilton Custom House, One Bowling Green, New York, New York, on August 26, 2003, at 10:00 a.m. (Eastern Time) (the "Hearing"), or as soon thereafter as counsel may be heard to consider the entry of the Amended Order Pursuant to Section 363 of the Bankruptcy Code Authorizing Acquisition of Digex, Incorporated (the "Amended Order"). 7 PLEASE TAKE FURTHER NOTICE that responses or objections to entry of the Amended Order, if any, must be in writing, shall conform to the Federal Rules of Bankruptcy Procedure and the Local Rules of the Bankruptcy Court, and shall be filed with the Bankruptcy Court electronically in accordance with General Order M-242 (General Order M-242 and the User's Manual for the Electronic Case Filing System can be found at www.nysb.uscourts.gov), by registered users of the Bankruptcy Court's case filing system and, by all other parties in interest, on a 3.5 inch disk, preferably in Portable Document Format (PDF), WordPerfect or any other Windows-based word processing format (with a hard-copy delivered directly to Chambers), and shall be served in accordance with General Order M-242 upon (i) the Debtors, 1133 19th Street, Washington, D.C. 20036, Attention: Anastasia Kelly, Esq., General Counsel, (ii) Weil, Gotshal & Manges LLP, 767 Fifth Avenue, New York, New York 10153, Attention: Lori R. Fife, Esq., attorneys for the Debtors; (iii) the Office of the United States Trustee for the Southern District of New York, 33 Whitehall Street, 21st floor, New York, New York 10004, Attention: Mary Elizabeth Tom, Esq.; (iv) Akin Gump Strauss Hauer & Feld, LLP, 590 Madison Avenue, New York, New York 10022, Attention: Daniel Golden, Esq., attorneys for the statutory committee of creditors; (v) Kirkpatrick & Lockhart LLP, 1800 Massachusetts Avenue, Washington, DC 20036, Attention: Richard Thornburgh, Esq. attorneys for the examiner in these chapter 11 cases; and (e) Shearman & Sterling, 599 Lexington Avenue, New York, New York 10022, Attention: Douglas Bartner, Esq. attorneys for the Debtors' postpetition lenders, and shall be filed with the Clerk of the United States Bankruptcy Court for the Southern District of New York, in each case so as to be received no later than August 25, 2003, at 9:00 a.m. (Eastern Time). 8 PLEASE TAKE FURTHER NOTICE THAT the statutory committee of unsecured creditors appointed in the Debtors' chapter 11 cases supports the entry of the Amended Order. Dated: New York, New York August 22, 2003 -------------------------------------------- Marcia L. Goldstein, Esq. (MG 2606) Lori R. Fife, Esq. (LF 2839) WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, NY 10153-0119 Telephone: (212) 310-8000 Facsimile: (212) 310-8007 and Alfredo R. Perez, Esq. WEIL, GOTSHAL & MANGES LLP 700 Louisiana, Suite 1600 Houston, TX 77002 Telephone: (713) 546-5000 Facsimile: (713) 224-9511 Attorneys for Debtors and Debtors in Possession 9 -----END PRIVACY-ENHANCED MESSAGE-----