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Lumen Technologies announced on August 19, 2025, that its subsidiary, Level 3 Financing, Inc., has closed a $2 billion offering of 7.000% First Lien Notes due 2034, strengthening its capital structure to support AI-driven network expansion.
$2B First Lien Notes: 7.000% notes due March 31, 2034, closed by Level 3 Financing.
Use of Proceeds: Redeemed $1.41B of 11.000% notes due 2029 and $305M of 10.750% notes due 2030.
Financial Strategy: Lowers interest costs, extends maturities, and boosts flexibility.
AI Focus: Funds high-performance, secure digital network services for AI workloads.
Market Confidence: Stock at $4.69, up 2.88% from average target (MarketScreener).
Announced: August 19, 2025, via Business Wire.
Lumen Technologies’ subsidiary, Level 3 Financing, Inc., completed a $2 billion offering of 7.000% First Lien Notes due 2034, upsized from an initial $1.25 billion due to strong demand. The proceeds, combined with cash on hand, were used to redeem all $1.41 billion of 11.000% Senior Secured Notes due 2029 and partially redeem $305 million of 10.750% First Lien Notes due 2030, including premiums and fees. This transaction, part of Lumen’s ongoing financial strategy, reduces borrowing costs, extends debt maturities, and enhances liquidity for AI infrastructure investments. “This financing is a clear vote of market confidence in our strategy and our future,” said Chris Stansbury, EVP and CFO of Lumen.
The notes, guaranteed by Level 3 Parent, LLC and certain subsidiaries, position Lumen to deliver high-performance, secure, and agile digital network services critical for AI workloads. The company’s focus on enterprise and public sector clients aligns with the $15 billion multi-cloud networking market. Posts on X, such as from @Lycanbull, highlight Lumen’s strategic pivot to AI, with over 1,000 customers adopting its Network-as-a-Service platform.
Lumen’s stock price is $4.69, with a 2.88% upside to the average target of $4.825, per MarketScreener. The company reported Q2 2025 revenue of $3.27 billion and a narrowed loss per share of -$0.03 versus an expected -$0.25, reflecting operational strength. The notes are unregistered under the Securities Act of 1933, sold to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.
Lumen is unleashing the world's digital potential. We ignite business growth by connecting people, data, and applications – quickly, securely, and effortlessly. As the trusted network for AI, Lumen uses the scale of our network to help companies realize AI's full potential. From metro connectivity to long-haul data transport to our edge cloud, security, managed service, and digital platform capabilities, we meet our customers’ needs today and as they build for tomorrow.
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