Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
DENVER - Lumen Technologies, Inc. (NYSE: LUMN), a $4.2 billion market cap telecommunications company with annual revenue of $13 billion, announced Monday that its subsidiary, Level 3 Financing, Inc., has agreed to sell $2.0 billion aggregate principal amount of 6.875% First Lien Notes due 2033, representing a $1.0 billion increase from the previously announced offering size. According to InvestingPro data, the company maintains a FAIR financial health score.
The notes were priced at par and will mature on June 30, 2033. They will be secured on a first lien basis by Level 3 Parent, LLC and certain unregulated subsidiaries of the issuer.
According to the press release, Level 3 Financing plans to use the proceeds, along with cash on hand, to redeem all $924.522 million of its 10.500% Senior Secured Notes due 2030 and all $667.711 million of its 10.500% First Lien Notes due 2029. The company will also partially redeem its 11.000% First Lien Notes due 2029, including payment of redemption premiums and related expenses. With total debt of $17.9 billion, this refinancing comes as InvestingPro analysis shows the company maintains a healthy current ratio of 1.21, indicating sufficient liquid assets to meet short-term obligations.
The transaction is expected to close on June 30, 2025, subject to customary closing conditions.
The First Lien 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 under Regulation S.
Lumen Technologies provides network services including metro connectivity, long-haul data transport, edge cloud, security, and managed service capabilities. For deeper insights into Lumen’s financial health and detailed analysis, access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers what really matters about this and 1,400+ other top stocks through intuitive visuals and expert analysis.
This information is based on a press release statement from Lumen Technologies.
In other recent news, Lumen Technologies announced a $1 billion offering by its subsidiary, Level 3 Financing, to refinance existing debt. The proceeds will be used to redeem $924.522 million of its senior secured notes due 2030, effectively extending the maturity date to 2033. In a significant development, AT&T has agreed to acquire Lumen’s Mass Markets fiber business for $5.75 billion, a deal expected to close in the first half of 2026. This acquisition will transfer about 1 million fiber customers and infrastructure covering over 4 million locations to AT&T, enhancing its fiber network coverage.
Lumen’s recent shareholder meeting resulted in the approval of a reverse stock split and the election of all nominated board members, including new appointees Michelle J. Goldberg and Steve McMillan. The company also announced the appointment of Mark Hacker as the new Executive Vice President and Chief Legal Officer, bringing over two decades of legal experience. These developments reflect Lumen’s strategic growth and transformation efforts in the digital networking sector. The company continues to focus on connecting data and applications securely, positioning itself as a trusted network for AI.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.