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Lumen Technologies, Inc. (NYSE:LUMN), currently trading at $5.12 with a market capitalization of $5.24 billion, announced Monday that its indirect subsidiary, Level 3 Financing, Inc., has completed the offering of an additional $425 million in aggregate principal amount of its 7.000% First Lien Notes due 2034. The new notes were issued as part of the same series as the $2.0 billion in 7.000% First Lien Notes initially issued on August 18, 2025. According to InvestingPro data, the company maintains a healthy liquidity position with liquid assets exceeding short-term obligations.
According to a statement included in the company’s SEC filing, Level 3 Financing plans to use the net proceeds from the offering, along with cash on hand, to redeem all $373 million in outstanding principal of its 10.750% First Lien Notes due 2030, including payment of the redemption premium and related fees and expenses. This refinancing effort comes as the company manages its total debt position of $18.17 billion, while maintaining a current ratio of 2.13, as revealed in InvestingPro’s comprehensive financial analysis.
Interest on the new notes will accrue from August 18, 2025, and will be paid semi-annually on March 31 and September 30 of each year, beginning March 31, 2026.
The notes are senior obligations of Level 3 Financing and are secured on a first lien basis by certain collateral, ranking equally with other first lien obligations and effectively senior to second lien and unsecured indebtedness to the extent of the collateral’s value. The notes are fully and unconditionally guaranteed, on a first lien secured basis, by Level 3 Parent, LLC and certain of its material domestic subsidiaries.
The indenture governing the notes provides Level 3 Financing with options to redeem some or all of the notes before maturity under specified terms, including redemption at a premium before August 31, 2028. In the event of specified change of control events, Level 3 Financing would be required to offer to repurchase the notes at 101% of principal plus accrued interest.
The notes and related guarantees have not been registered under the Securities Act of 1933 and were offered only to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S.
This article is based on information disclosed in a press release statement filed with the Securities and Exchange Commission. For deeper insights into Lumen Technologies’ financial health, debt structure, and comprehensive analysis, including additional ProTips and detailed metrics, explore the full company report available on InvestingPro.
In other recent news, Lumen Technologies has made several notable announcements. The company, through its subsidiary Level 3 Financing, Inc., is set to offer an additional $425 million in 7.000% First Lien Notes due 2034. This move is part of a larger series, initially issuing $2 billion in notes. In a strategic collaboration, Lumen has partnered with Palantir Technologies to integrate the Foundry and Artificial Intelligence Platform across its operations. This partnership is aimed at transforming Lumen from a traditional telecom provider to a next-generation technology infrastructure company by streamlining workflows and simplifying complex legacy operations.
Additionally, Goldman Sachs has assumed coverage of Lumen Technologies with a Neutral rating, setting a price target of $4.10. The investment bank highlights Lumen’s ongoing business turnaround efforts, including the proposed sale of its consumer fiber business to AT&T and various cost-saving initiatives. These developments reflect Lumen’s strategic focus on enterprise services and improving its market strategy.
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