<PAGE>
EXHIBIT 99.2
[McLeodUSA logo] [MCLD: A Nasdaq-100 Company logo]
McLeodUSA Incorporated
McLeodUSA Technology Park
6400 C Street SW, PO Box 3177
Cedar Rapids, IA 52406-3177
Investor Contact: Bryce E. Nemitz
Press Contact: Bruce A. Tiemann
[email protected]
Phone: (319) 790-7800
FAX: (319) 790-7767
For Immediate Release
McLeodUSA Proposed Offering of Senior Notes -- Update
(CEDAR RAPIDS, Iowa) -- January 4, 2001--McLeodUSA Incorporated (Nasdaq:
MCLD) today announced an update of its plans for a proposed underwritten
offering of its Senior Notes. The Company now plans to raise approximately $750
million due January 1, 2009 in a proposed offering of 11 3/8% Senior Notes.
A copy of the prospectus may be obtained from Salomon Smith Barney, 390
Greenwich St., New York, N.Y., 10014, by calling the Prospectus Department at
(718) 765-6732 or the General Switchboard at (212) 816-6000 during normal
business hours.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these securities
in any state in which such offer, solicitation or sale, would be unlawful, prior
to registration or qualification under the securities laws of any such state.
About McLeodUSA:
----------------
McLeodUSA provides selected telecommunications services to customers nationwide.
Integrated communications including local services are currently available in
several Midwest and Rocky Mountain states; long distance, advanced data and
Internet services are available in all 50 states. McLeodUSA is a facilities-
based telecommunications provider with 375 ATM switches, 37 voice switches,
nearly 905,000 local lines, and more than 9,500 employees. The network is
capable of transmitting integrated next-generation data, video and voice
services, reaching 800 cities and 90 percent of the U.S. population. In the
<PAGE>
next 12 months, McLeodUSA plans to distribute 30 million directories in 26
states, serving a population of 51 million. McLeodUSA Incorporated is a Nasdaq-
100 company traded as MCLD. The Company's Web site is available at
www.mcleodusa.com.
-----------------
Some of the statements contained in this press release discuss future
expectations, contain projections of results of operations or financial
condition or state other forward-looking information. Those statements are
subject to known and unknown risks, uncertainties and other factors that could
cause the actual results to differ materially from those contemplated by the
statements. The "forward-looking" information is based on various factors and
was derived using numerous assumptions. In some cases, you can identify these
so-called forward-looking statements by words like "may," "will," "should,"
"expects," "plans," "anticipates," "believes," "estimates," "predicts,"
"projects," "potential," or "continue" or the negative of those words and other
comparable words. You should be aware that those statements only reflect the
predictions of McLeodUSA. Actual events or results may differ substantially.
Important factors that could cause actual events or results of McLeodUSA to be
materially different from the forward-looking statements include availability of
financing and regulatory approvals, the number of potential customers in a
target market, the existence of strategic alliances or relationships,
technological, regulatory or other developments in the industry, changes in the
competitive climate in which McLeodUSA operates and the emergence of future
opportunities. These and other applicable risks are summarized under the
caption "Risk Factors" in the McLeodUSA Annual Report on Form 10-K for the
fiscal year ended December 31, 1999, which is filed with the Securities and
Exchange Commission.
# # #
2
