HERNDON, VA – XO Holdings, Inc. (OTC BB:XOHO.OB – News) has raised $780 million through the issuance of two new series of preferred stock in order to retire senior debt, fund future growth initiatives and provide ongoing working capital for the business.

XO Holdings Inc. is the parent company of XO Communications and Nextlink, providers of wireline and wireless communications services.

The deal includes a block of stock sold to affiliates of company chair, Carl C. Icahn.

The funding eliminated all of the company’s indebtedness.

Icahn, chair of XO for the last five years, said, “With its very strong balance sheet and unique network assets, XO should remain extremely competitive as a CLEC and wholesale carrier.”

On the Web: www.xo.com

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