Lumen subsidiary to sell $425 million in notes to refinance debt

Published 04/09/2025, 21:06
Lumen subsidiary to sell $425 million in notes to refinance debt

DENVER - Lumen Technologies, Inc. (NYSE:LUMN), a $5.1 billion market cap telecommunications company currently trading at $4.97 per share, announced Thursday that its wholly-owned subsidiary, Level 3 Financing, Inc., has agreed to sell $425 million aggregate principal amount of 7.000% First Lien Notes due 2034. According to InvestingPro data, the company maintains a healthy liquidity position with a current ratio of 2.13.

The additional notes represent a further issuance of Level 3 Financing’s existing 7.000% First Lien Notes due 2034, of which $2 billion was originally issued on August 18, 2025. The new notes will form a single series with the initial notes and share the same terms, except for issue date and price.

Priced at 100.000% of their aggregate principal amount, the notes will mature on March 31, 2034. Upon issuance, they will be fully and unconditionally guaranteed on a first lien secured basis by Level 3 Parent, LLC and certain unregulated subsidiaries of the issuer.

Level 3 Financing plans to use the net proceeds, along with cash on hand, to redeem all $373 million aggregate principal amount of its 10.750% First Lien Notes due 2030, including payment of redemption premium and related expenses. The offering is expected to complete on September 8, 2025, subject to customary closing conditions.

The notes are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States under Regulation S of the Securities Act. They will not be registered under the Securities Act or any state securities laws, and holders will not have registration rights.

Lumen Technologies provides network services for business customers, with offerings including metro connectivity, long-haul data transport, edge cloud, security, and managed services.

This article is based on a press release statement from Lumen Technologies.

In other recent news, Lumen Technologies announced that its subsidiary, Level 3 Financing, Inc., plans to offer an additional $425 million in First Lien Notes due 2034. This move follows an initial issuance of $2 billion in the same series of notes. Additionally, Lumen has entered into a partnership with Palantir Technologies to integrate Palantir’s Foundry and Artificial Intelligence Platform across its operations. This collaboration aims to streamline workflows and accelerate the company’s transformation into a next-generation technology infrastructure firm.

Goldman Sachs has assumed coverage of Lumen Technologies with a Neutral rating and set a price target of $4.10. The bank highlights Lumen’s ongoing business turnaround, including the proposed sale of its consumer fiber business to AT&T and cost-saving initiatives. Furthermore, Lumen has expanded its high-speed connectivity services to 16 metro markets and over 70 third-party data centers in the U.S., offering speeds of up to 400 gigabits per second. This expansion supports the growing demand for artificial intelligence and multi-cloud deployments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.