The Regents - University of California | Office of The President

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243. In August of 2000, WorldCom, Citigroup and other lenders entered
into First Amendment and Renewal of the Amended and Restated 364-day
Revolving Credit and Term Loan Agreement this First Amendment and Renewal
of the Amended and Restated 364-day Revolving Credit and Term Loan
Agreement for $7 billion with Citigroup as a lender.
244. In June of 2001, WorldCom, Citigroup and other lenders entered into
two revolving credit agreements, one for $2.65 billion and the other for $1.6
billion with Citigroup as a lender.
245. As part of its due diligence prior to entering into each of these
agreements, Citigroup reviewed financial records, books and files so that it knew
the financial condition of WorldCom.
246. In the Loan Agreements (generally § 7.4 in each loan agreement),
Citigroup had the right to review the books, files and records, conduct tests and
investigations, and to discuss WorldCom’s finances with WorldCom’s creditors,
directors, officers, employees and independent auditors. As part of its due
diligence, it conducted investigations of WorldCom’s finances on a periodic basis.
XII. THE PUBLIC OFFERINGS
A. Public Offering May 2000
247. On May 19, 2000, according to an 8-K filed by WorldCom on May
22, 2000, WorldCom and Salomon and others entered into an Underwriting
Agreement. Salomon was one of the lead managers and was the book running
manager for the offering. See Prospectus filed May 17, 2000.
248. The Registration statement for the offering included incorporation of
WorldCom’s 10-K for fiscal year end 1999 including Andersen’s unqualified audit
opinion and WorldCom’s first quarter 2000 10-Q. These defendants consented to
their name being used in Proxy Statements. As such, they participated in the
solicitation, offering, and sale of the notes to the investing public pursuant to the
Registration statements.
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COMPLAINT