<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 5
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check this box if no longer subject to Section 16. Form 4 or
Form 5 obligations may continue. See Instructions 1(b).
(X) Form 3 Holdings Reported.
( ) Form 4 Transactions Reported.
1. Name and Address of Reporting Person:
Steven L. Grissom
121 South 17th Street
Mattoon, Illinois 61938
U.S.A.
2. Issuer Name and Ticker or Trading Symbol:
McLeodUSA Incorporated
MCLD
3. IRS or Social Security Number of Reporting Person (Voluntary):
4. Statement for Month/Year:
December, 1998
5. If Amendment, Date of Original (Month/Year):
6. Relationship of Reporting Person(s) to Issuer (Check all
applicable):
( ) Director ( ) 10% Owner ( ) Officer (give title below) (x)
Other (specify below)
Member of 13(d) group owning more than 10%
7. Individual or Joint/Group Filing (Check Applicable Line):
(x) Form filed by One Reporting Person
( ) Form filed by More than One Reporting Person<PAGE>
<TABLE>
<CAPTION>
Table I -- Non-Derivative Securities Acquired,
Disposed of, or Beneficially Owned
<S> <C> <C> <C> <C> <C> <C>
5. Amount
of Securities
Beneficially 6. Owner- 7. Nature of
2. Trans- Owned at End ship Form: Indirect
1. Title of action 3. Trans- 4. Securities Acquired (A) of Month Direct (D) or Beneficial
Security Date (Month/ action Code or Disposed of (D) (Instr. 3 Indirect (I) Ownership
(Instr. 3) Day/Year) (Instr. 8) (Instr. 3, 4 and 5) and 4) (Instr. 4) (Instr. 4)
----------- ------------ ----------- -------------------------- ------------- ------------- ------------
Code V Amount (A)or(D) Price
</TABLE>
<TABLE>
<CAPTION>
Table II -- Derivative Securities Acquired,
Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9.
Number of 10.
5. Deri- Ownership
2. Number of vative Form of
Conver- Derivative 6. Securities Deriva-
1. sion or 3. Securities Date 7. 8. Benefi- tive 11.
Title Exercise Trans- 4. Acquired (A) Exercis- Title Price cially Security: Nature
of Deri- Price of action Trans- or Disposed able and and Amount of of Deri- Owned Direct (D) of Indirect
vative Deriva- Date action of (D) Expiration Underlying vative at End of or In- Beneficial
Security tive (Month/ Code (Instr. 3, Date (Month/ Securities Security Month direct (I) Ownership
(Instr. 3)Security Day/Year) (Instr. 8) 4 and 5) Day/Year) (Instr. 3 and 4) (Instr. 5) (Instr. 4) (Instr. 4) (Instr. 4)
------------------ --------- ---------- ------------ ------------ ---------------- ---------- ---------- ---------- ----------
Code V (A) (D) Date Expir- Title Amount or
Exer- ation Number of
cis- Date Shares
able
Employee $29.75 12/31/98 4(1) (1) 12/31/08 Class A 5,000 5,000 D
Stock Common
Option Stock
(right to
buy) (1)
</TABLE>
(1) The employee stock option dated 12/31/98 vests in four equal
annual installments which begin on December 31, 1999.<PAGE>
SIGNATURE OF REPORTING PERSON:
Steven L. Grissom
DATE: February 8, 1999
