Lumen Technologies enhances capital structure with $2 billion first lien notes.

Lumen Technologies has closed a $2 billion offering of 7.000% First Lien Notes due 2034 to support its strategy to lower costs, extend maturities, and accelerate digital infrastructure growth. The notes have a maturity date of March 31, 2034 and are guaranteed and secured on a first lien basis by Level 3 Parent, LLC and certain subsidiaries of Lumen.

Lumen Technologies, Inc. (NYSE: LUMN) has successfully closed a $2 billion offering of 7.000% First Lien Notes due in 2034. This financing round is part of the company's broader strategy to simplify its capital structure, extend maturities, and reduce overall borrowing costs. The notes, which have a maturity date of March 31, 2034, are guaranteed and secured on a first lien basis by Level 3 Parent, LLC and certain subsidiaries of Lumen.

The funds raised from this offering will be used to redeem a portion of existing debt, specifically $1.408 billion of 11.000% Senior Secured Notes due in 2029 and $305.367 million of 10.750% First Lien Notes due in 2030. Additionally, the net proceeds will help cover related fees and expenses.

This transaction aligns with Lumen's ongoing efforts to enhance its financial flexibility and lower interest expenses. By extending maturities and simplifying its capital structure, the company aims to strengthen its position as a trusted network provider for AI and other digital infrastructure needs.

Chris Stansbury, Executive Vice President and Chief Financial Officer of Lumen Technologies, commented on the significance of this financing: "This financing is a clear vote of market confidence in our strategy and our future. We are executing with discipline to lower our interest expense, extend our maturity runway, and free up capital to invest in growth. Every step we take strengthens Lumen’s position as the partner enterprises trust to power their most critical workloads in the AI-powered economy."

The First Lien Notes are not registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from applicable registration requirements. They were offered and sold only to qualified institutional buyers in accordance with Rule 144A and to non-U.S. persons outside the United States in accordance with Regulation S.

References:

[1] https://www.morningstar.com/news/business-wire/20250818030356/lumen-technologies-further-enhances-capital-structure-to-power-ai-era-network-expansion
[2] https://www.businesswire.com/news/home/20250818030356/en/Lumen-Technologies-Further-Enhances-Capital-Structure-to-Power-AI-Era-Network-Expansion