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Lumen Technologies, Inc. (NYSE: LUMN) has announced that its wholly-owned subsidiary, Level 3 Financing, Inc., will issue an additional $425 million in 7.000% First Lien Notes due 2034, further expanding its earlier $2 billion issuance on August 18, 2025. This strategic move aims to refinance higher-cost debt and optimize the company’s capital structure to support its AI-driven network expansion.
Additional Notes: $425M of 7.000% First Lien Notes due 2034, priced at 100.000% of principal.
Total Issuance: Adds to $2B initial issuance, forming a single series maturing March 31, 2034.
Use of Proceeds: Redeem $373M of 10.750% First Lien Notes due 2030, plus fees and premiums.
Closing Date: Expected September 8, 2025, subject to customary conditions.
Guarantees: Fully secured by Level 3 Parent, LLC and certain unregulated subsidiaries.
Stock Performance: LUMN closed at $4.87 on September 5, 2025, with a market cap of $4.87B.
The Additional First Lien Notes, priced at par (100.000% of aggregate principal), are a further issuance of Level 3 Financing’s 7.000% First Lien Notes due 2034, originally issued for $2 billion on August 18, 2025. These notes will mature on March 31, 2034, and are fully guaranteed on a first lien secured basis by Level 3 Parent, LLC and certain unregulated subsidiaries. The proceeds, combined with cash on hand, will redeem all $373 million of Level 3 Financing’s 10.750% First Lien Notes due 2030, including redemption premiums and related fees. This transaction reduces Lumen’s interest expenses by replacing higher-yield debt with lower-cost notes.
The offering, expected to close on September 8, 2025, is subject to customary closing conditions. The notes are not registered under the Securities Act of 1933 and are offered only to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S, without registration rights for holders.
This upsized offering follows Lumen’s earlier $2 billion issuance of 7.000% First Lien Notes due 2034, announced on August 4, 2025, which was itself a $750 million increase from an initial $1.25 billion plan. The proceeds from the initial offering were used to redeem $1,408,435,434 of 11.000% First Lien Notes due 2029 and partially redeem $305,367,000 of 10.750% First Lien Notes due 2030. Together, these moves reflect Lumen’s ongoing strategy to simplify its capital structure, extend debt maturities, and lower borrowing costs, positioning the company for growth in AI-driven network services.
Lumen’s total debt stood at $18.17 billion as of September 4, 2025, with a market cap of $4.87 billion. The company’s focus on refinancing high-cost debt aligns with its broader transformation into a next-generation technology infrastructure provider, as evidenced by recent partnerships with Palantir Technologies and expanded connectivity services for data centers.
Lumen Technologies (NYSE: LUMN) is a global leader in digital connectivity, unleashing business potential by connecting people, data, and applications. As a trusted network for AI, Lumen leverages its extensive network infrastructure to deliver metro connectivity, long-haul data transport, edge cloud, security, and managed services, meeting customer needs for today and tomorrow.
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