SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
--------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 18, 2000
KMC TELECOM HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 333-50475 22-3545325
(State or Other (Commission (I.R.S. Employer
Jurisdiction File Number) Identification No.)
of Incorporation)
KMC Telecom Holdings, Inc.
1545 Route 206, Suite 300
Bedminster, New Jersey 07921
(Address of Principal Executive Offices, Including Zip Code)
Registrant's telephone number, including area code: 908-470-2100
Exhibit List Appears on Page 4
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ITEM 5. OTHER EVENTS.
KMC Telecom Holdings, Inc. (the "Registrant") wishes to report
certain information with respect to its resolution of a dispute with BellSouth
Corporation with respect to the Registrant's entitlement to reciprocal
compensation. The Registrant's press release announcing the resolution, dated
May 18, 2000, is attached hereto as Exhibit 99.1 and is incorporated herein by
reference in its entirety.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) Financial Statements of Businesses Acquired.
Not Applicable
(b) Pro Forma Financial Information.
Not Applicable
(c) Exhibits.
The following exhibits are filed with this Report.
EXHIBIT NO. DESCRIPTION
99.1 Press Release, dated May 18, 2000
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KMC TELECOM HOLDINGS, INC.
Date: May 18, 2000 By: /S/ ROBERT F. HAGAN
-----------------------------------------
Name: Robert F. Hagan
Title: Senior Vice President Finance
3
<PAGE>
EXHIBIT LIST
EXHIBIT NO. DESCRIPTION
99.1 Press Release, dated May 18, 2000
4
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Jim Crawford
Crawford Public Relations
703-318-5460
[email protected]
KMC TELECOM AND BELLSOUTH AGREE ON
RECIPROCAL COMPENSATION RESOLUTION
BEDMINSTER, NJ, MAY 18, 2000 - KMC Telecom Holdings, Inc., a provider
of competitive local telecommunications services, today announced that it has
reached a mutually-agreeable resolution of its claims for payment of certain
reciprocal compensation charges, previously disputed by BellSouth. Terms of the
agreement were not disclosed.
Under the agreement, described by KMC Telecom officials as a "major
accomplishment," BellSouth will make a one-time payment that resolves amounts
disputed through March 31, 2000. The settlement is expected to be received by
KMC prior to the end of May.
In addition, BellSouth and KMC agreed to future rates for reciprocal
compensation, setting new contractual terms for payment. Under the terms of the
agreement, the rates for reciprocal compensation will be reduced, and will apply
to all local traffic, including ISP-bound traffic, thereby eliminating the
principal area of dispute between the parties. The reduction will be phased in
over a three-year period beginning with a rate of .002 per minutes of use in
year 2000, .00175 for 2001 and .00150 for 2002.
"This agreement is a major accomplishment that brings certainty of
payment to the most significant portion of our reciprocal compensation
revenue stream," said Roscoe C. Young II, President and Chief Operating
Officer of KMC Telecom. "We are pleased with the outcome, and
particularly delighted with the KMC team that brought this agreement to
fruition in less than a month."
KMC Telecom Holdings, Inc., a privately owned facilities-based
competitive local exchange carrier, operates local fiber optic networks in 35
markets throughout the Mid-Atlantic, Midwest and South. Founded in 1995, the
company offers customers an attractive alternative in local telephone and data
communication services. For further information, visit WWW.KMCTELECOM.COM.
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