Lumen Technologies completes $425 million notes offering to refinance debt

Lumen Technologies, Inc. (NYSE:LUMN), a telecommunications company with a market capitalization of $5.2 billion and annual revenue of $12.8 billion, announced Monday that its indirect subsidiary, Level 3 Financing, Inc., has completed an offering of $425 million in aggregate principal amount of 7.000% First Lien Notes due 2034. According to InvestingPro data, the company maintains a current ratio of 2.13, indicating sufficient liquidity to meet short-term obligations. The transaction adds to the $2.0 billion in First Lien Notes previously issued on August 18, 2025, forming a single series with the same terms except for the issue date and price.

According to a statement based on a Securities and Exchange Commission filing, Level 3 Financing intends to use the net proceeds from the offering, along with cash on hand, to redeem all $373 million aggregate principal amount of its 10.750% First Lien Notes due 2030. This refinancing comes as the company manages a substantial total debt of $18.2 billion, while generating $3.2 billion in EBITDA for the last twelve months. The proceeds will also be used to pay the related redemption premium, fees, and expenses. The company noted that the filing does not constitute a formal notice of redemption.

Interest on the new notes accrues from August 18, 2025, and will be payable semi-annually on March 31 and September 30, beginning March 31, 2026.

The notes are senior obligations of Level 3 Financing, secured on a first lien basis by specified collateral. They are fully and unconditionally guaranteed, jointly and severally, on a first lien secured basis by Level 3 Parent, LLC and certain of its material domestic subsidiaries. The guarantees and the notes are subject to various conditions, limitations, and regulatory approvals as detailed in the indenture.

The notes may be redeemed at Level 3 Financing’s option, subject to specified terms, including make-whole provisions and redemption premiums prior to August 31, 2028. After that date, the notes may be redeemed at set prices. In the event of certain change of control events, holders may require the company to repurchase the notes at 101% of principal plus accrued interest.

The indenture includes customary events of default and restrictive covenants limiting additional indebtedness and certain corporate actions.

The notes and related guarantees have not been registered under the Securities Act of 1933 and were offered only to qualified institutional buyers and non-U.S. persons under applicable exemptions. Holders of the notes do not have registration rights.

This information is based on a press release statement included in a recent SEC filing.

In other recent news, Lumen Technologies announced that its subsidiary, Level 3 Financing, Inc., has completed the offering of $425 million in 7.000% First Lien Notes due 2034. This issuance is part of the same series as the $2 billion in notes issued earlier, with plans to use the proceeds to redeem $373 million in outstanding 10.750% First Lien Notes due 2030. Additionally, Lumen has entered into a collaboration with Palantir Technologies to integrate Palantir’s Foundry and Artificial Intelligence Platform across its operations. This partnership is intended to streamline workflows and accelerate Lumen’s transformation from a traditional telecom provider to a technology infrastructure company. The collaboration is expected to simplify complex legacy operations and improve decision-making processes. These developments highlight Lumen’s strategic efforts to manage its debt and enhance its technological capabilities.

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