Lumen Subsidiary Raises $425M with 7% First Lien Notes Due 2034

Lumen Technologies' subsidiary, Level 3 Financing, has priced $425M in 7.000% First Lien Notes due 2034, forming a single series with a previous $2B issuance. The notes will be used to refinance existing debt, strengthening the company's financial position.

Lumen Technologies' subsidiary, Level 3 Financing, has priced $425 million in 7.000% First Lien Notes due 2034. This issuance, which will form a single series with the existing $2 billion notes, is an additional financing move aimed at strengthening the company's financial position.

The notes, priced at 100% of face value, will mature on March 31, 2034. Upon issuance, they will be guaranteed on a first lien secured basis by Level 3 Parent and certain unregulated subsidiaries. The net proceeds, along with cash on hand, will be used to redeem $373 million of 10.750% First Lien Notes due 2030, and to pay related fees and expenses. The offering is expected to close on September 8, 2025 [1].

This move follows a series of strategic initiatives by Lumen Technologies, including partnerships and new product launches, aimed at bolstering its market presence and financial stability. The company has been increasingly focusing on innovation and technological advancements, which have been reflected in its financial performance.

References:
[1] https://seekingalpha.com/news/4492487-lumens-subsidiary-prices-425m-in-700-first-lien-notes-due-2034