Lumen unit plans $425 million additional first lien notes offering

Published 04/09/2025, 12:40
Lumen unit plans $425 million additional first lien notes offering

DENVER - Lumen Technologies, Inc. (NYSE:LUMN) announced Thursday that its wholly-owned subsidiary, Level 3 Financing, Inc., plans to offer an additional $425 million aggregate principal amount of 7.000% First Lien Notes due 2034. The company, currently valued at $4.87 billion in market capitalization, maintains a total debt position of $18.17 billion according to InvestingPro data.

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

According to the company, Level 3 Financing intends to use the net proceeds from this offering, along with cash on hand, to redeem all $373 million aggregate principal amount of its 10.750% First Lien Notes due 2030. The funds will cover the redemption premium and related fees and expenses.

The notes will not be registered under the Securities Act of 1933 and are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States in accordance with Regulation S. The notes will not have registration rights.

Lumen Technologies describes itself as a network provider focused on connecting people, data, and applications. The company operates metro connectivity, long-haul data transport, edge cloud, security, and managed service capabilities.

The announcement, based on a press release statement, includes forward-looking statements that depend on various factors including market receptivity to the offering, potential changes in credit ratings, and general market and economic conditions.

In other recent news, Lumen Technologies has announced a collaboration with Palantir Technologies to integrate Palantir’s Foundry and Artificial Intelligence Platform across its operations. This partnership is part of Lumen’s strategy to transition from a traditional telecom provider to a next-generation technology infrastructure company, aiming to streamline workflows and simplify complex legacy operations. Additionally, Goldman Sachs has assumed coverage of Lumen Technologies with a Neutral rating, highlighting the company’s focus on a multi-step business turnaround, including a proposed sale of its consumer fiber business to AT&T and other strategic initiatives.

Lumen Technologies has also expanded its high-speed connectivity services across 16 metro markets and over 70 third-party data centers in the United States, offering speeds of up to 400 gigabits per second to meet growing enterprise demand. In leadership changes, Lumen has appointed Sean Alexander as Senior Vice President of Connected Ecosystems, who will focus on customer co-innovation and strategic partnerships. These developments reflect Lumen’s ongoing efforts to enhance its network infrastructure and explore new revenue streams.

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

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