<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        I:\CONVER\Edgar Ease Plus\Default Project Format\format600v4.eep -->
     <!-- Control Number: NY13513                                                          -->
     <!-- Rev Number:     8-K                                                              -->
     <!-- Client Name:    McLeodUSA Inc.                                                   -->
     <!-- Project Name:   Alison Rhoten                                                    -->
     <!-- Firm Name:      McLeod USA                                                       -->
     <TITLE>8-K</TITLE>
</HEAD>
<BODY>
<BR><BR>


<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
UNITED STATES<BR>SECURITIES AND EXCHANGE COMMISSION<BR>Washington, D.C. 20549 </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM 8-K </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CURRENT
REPORT<BR>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934  </FONT></TD></TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date
of Report (Date of Earliest Event reported):&nbsp;&nbsp;November 1, 2004<!-- DATE --> </FONT></TD></TR>
</TABLE>
<BR>


<TABLE WIDTH="600" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">MCLEODUSA INCORPORATED<!-- Name of Registrant --></FONT></TD></TR>
<TR VALIGN="MIDDLE">
     <TD WIDTH="600" ALIGN="CENTER"><HR NOSHADE SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Exact name of registrant as specified in its charter)</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="8k Cover table 3" FSL="Project" -->
<TABLE WIDTH="600" CELLPADDING="0" CELLSPACING="0" BORDER="0">
<tr Valign=BOTTOM>
<TD WIDTH="33%" ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2>DELAWARE <!-- State--></font></td>
<TD WIDTH="34%" ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2>0-20763<!-- File No.--></font></td>
<TD WIDTH="33%" ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2>42-1407240<!-- Irs No.--></font></td>
</tr>
<tr Valign=TOP>
<TD ALIGN="CENTER"><Hr Size=1 Noshade></td>
<td Align=CENTER><Hr Size=1 Noshade></td>
<TD ALIGN="CENTER"><Hr Size=1 Noshade></td>
</tr>
<tr Valign=TOP>
<TD ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2>(State or other jurisdiction <br>of incorporation)</font></td>
<td ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2>(Commission<br>File Number) </font></td>
<TD ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2>(IRS Employer<br> Identification No.) </font></td>
</tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>McLeodUSA
Technology Park, 6400 C Street SW, P.O. Box 3177, Cedar Rapids, IA 52406-3177 </FONT></TD></TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<tr Valign=TOP>
     <TD><HR NOSHADE SIZE=1></TD>
</tr>
</table>

<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Address
of principal executive offices) (Zip Code) </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Registrant's
telephone number, including area code&nbsp;&nbsp;(319) 364-0000 </FONT></TD></TR>
</TABLE>
<BR>


<TABLE WIDTH="600" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<!-- FORMER NAME OR ADDRESS --></FONT></TD></TR>
<TR VALIGN="MIDDLE">
     <TD WIDTH="600" ALIGN="CENTER"><HR NOSHADE SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Former name or former address, if changed since last report.) </FONT></TD></TR>
</TABLE><BR><BR>



<!-- MARKER FORMAT-SHEET="Para Flush Left" FSL="Default" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below): </FONT></TD></TR></TABLE><BR>

<!-- MARKER FORMAT-SHEET="Para List Hang" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><font face="wingdings"> &#168; </font></TD>
<TD WIDTH=96%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para List Hang" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><font face="wingdings"> &#168; </font></TD>
<TD WIDTH=96%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para List Hang" FSL="Project" -->
<TABLE WIDTH=610 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><font face="wingdings"> &#168; </font></TD>
<TD WIDTH=96%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para List Hang" FSL="Project" -->
<TABLE WIDTH=610 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><font face="wingdings"> &#168; </font></TD>
<TD WIDTH=96%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Break Table" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE COLOR="BLACK">
</TD></TR></TABLE><BR>


<!-- MARKER FORMAT-SHEET="Para Flush Left" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item
1.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Termination of a Material Definitive Agreement. </FONT></TD></TR></TABLE><BR>

<!-- MARKER FORMAT-SHEET="Para Flush Left" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effective
November 1, 2004, McLeodUSA Telecommunications Services, Inc., (together with certain
consolidated entities, &#147;McLeodUSA&#148;) entered into a Partial Termination and
Reconveyance Agreement (the &#147;Agreement&#148;) with Level 3 Communications LLC
(&#147;Level 3&#148;) which substantially terminates the Cost Sharing National IRU
Agreement, dated April 26, 1999, and subsequent amendments thereto (the &#147;IRU
Agreement&#148;), as between Level 3 and McLeodUSA. In connection therewith, McLeodUSA and
Level 3 entered into novation agreements (&#147;Novation Agreements&#148;) with each of
CTC Communications Corp., Broadwing Communications, LLC and CenturyTel Fiber Company II,
LLC (the &#147;Novation Parties&#148;) pursuant to which the Novation Parties replaced
McLeodUSA in certain remaining portions of the IRU Agreement. </FONT></TD></TR></TABLE><BR>

<!-- MARKER FORMAT-SHEET="Para Flush Left" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Agreement, together with the associated Novation Agreements, substantially returns the
assets conveyed in the IRU Agreement back to Level 3 and/or the Novation Parties, thereby
eliminating McLeodUSA&#146;s approximately 15 years of remaining obligations, including
operating and maintenance services and related expenditures. McLeodUSA will receive cash
consideration from Level 3 and the Novation Parties of approximately $14.1 million and
additional consideration in the form of mutual releases between McLeodUSA and Level 3.
These actions are part of McLeodUSA&#146;s previously announced plan to dispose of
non-core fiber assets. No early termination penalties were incurred by
McLeodUSA. </FONT></TD></TR></TABLE><BR>

<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Left" FSL="Default" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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 hereunto duly authorized. </FONT></TD></TR></TABLE><BR>


<!-- MARKER FORMAT-SHEET="Company Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="44%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="48%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">MCLEODUSA INCORPORATED<BR>
(Registrant)<!-- COMPANY --> </FONT></TD>
  </TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Date By Signature" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date: </FONT></TD>
    <TD WIDTH="39%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">November 5, 2004 <!-- DATE--> </FONT></TD>
    <TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By: </FONT></TD>
    <TD WIDTH="43%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;/s/&nbsp;  G. Kenneth Burckhardt<!-- NAME --> </FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD>&nbsp; </TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> <HR NOSHADE SIZE="1"> </TD>
  </TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Name Title Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="TOP">
    <TD WIDTH="57%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:&nbsp;</FONT></TD>
    <TD WIDTH="35%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">G. Kenneth Burckhardt <!-- NAME --></FONT></TD>
</TR>
  <TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Its:&nbsp;</FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Executive Vice President<BR>
and Chief Financial Officer <!-- TITLE --></FONT></TD></TR>
</TABLE>
<BR>






</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "chi484128.htm", "description": "FORM 8-K", "secsgml_size_bytes": 12538}]
{"company-data": {"conformed-name": "MCLEODUSA INC", "cik": "0000919943", "assigned-sic": "4812", "irs-number": "421407240", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-20763", "film-number": "041122938"}, "business-address": {"street1": "6400 C ST SW", "street2": "PO BOX 3177", "city": "CEDAR RAPIDS", "state": "IA", "zip": "52406", "phone": "3193640000"}, "mail-address": {"street1": "6400 C ST SW", "street2": "PO BOX 3177", "city": "CEDAR RAPIDS", "state": "IA", "zip": "52406"}, "former-company": {"former-conformed-name": "MCLEOD INC", "date-changed": "19960403"}}
8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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):  November 1, 2004
MCLEODUSA INCORPORATED
(Exact name of registrant as specified in its charter)
DELAWARE
0-20763
42-1407240
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
McLeodUSA
Technology Park, 6400 C Street SW, P.O. Box 3177, Cedar Rapids, IA 52406-3177
(Address
of principal executive offices) (Zip Code)
Registrant's
telephone number, including area code  (319) 364-0000
(Former name or former address, if changed since last report.)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
1.02       Termination of a Material Definitive Agreement.
Effective
November 1, 2004, McLeodUSA Telecommunications Services, Inc., (together with certain
consolidated entities, "McLeodUSA") entered into a Partial Termination and
Reconveyance Agreement (the "Agreement") with Level 3 Communications LLC
("Level 3") which substantially terminates the Cost Sharing National IRU
Agreement, dated April 26, 1999, and subsequent amendments thereto (the "IRU
Agreement"), as between Level 3 and McLeodUSA. In connection therewith, McLeodUSA and
Level 3 entered into novation agreements ("Novation Agreements") with each of
CTC Communications Corp., Broadwing Communications, LLC and CenturyTel Fiber Company II,
LLC (the "Novation Parties") pursuant to which the Novation Parties replaced
McLeodUSA in certain remaining portions of the IRU Agreement.
The
Agreement, together with the associated Novation Agreements, substantially returns the
assets conveyed in the IRU Agreement back to Level 3 and/or the Novation Parties, thereby
eliminating McLeodUSA's approximately 15 years of remaining obligations, including
operating and maintenance services and related expenditures. McLeodUSA will receive cash
consideration from Level 3 and the Novation Parties of approximately $14.1 million and
additional consideration in the form of mutual releases between McLeodUSA and Level 3.
These actions are part of McLeodUSA's previously announced plan to dispose of
non-core fiber assets. No early termination penalties were incurred by
McLeodUSA.
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 hereunto duly authorized.
MCLEODUSA INCORPORATED
(Registrant)
Date:
November 5, 2004
By:
/s/   G. Kenneth Burckhardt
Name:
G. Kenneth Burckhardt
Its:
Executive Vice President
and Chief Financial Officer