McLeod USA (MCLD) was up 11.4% in early trading after the telephone and data services company said it is funded through 2003, when it expects to produce free cash flow.
The company said it has $550 million untapped from its $1.3 billion credit facility and expects more than $120 million from the previously announced sale of wireless licenses.
The company said in a statement ``The sale of these licenses ... will contribute approximately four times that amount to our cash flow position this year. Coupled with our cash on hand and our ability to access additional cash ... we continue to operate a funded plan through free cash flow in 2003.''
The emerging business has been hurt by a slowing economy and pricing pressures and in May cut 2001 revenue and earnings forecasts and announced it was cutting 575 jobs, or 5% of its workforce.