DENVER - Lumen Technologies, Inc. (NYSE: LUMN), a global network solutions provider, has announced the successful completion of a significant debt restructuring process. The company, along with Level 3 Financing, Inc. and Qwest Corporation, has achieved broad creditor support for its amended and restated transaction support agreement (TSA), which involved over $15 billion of outstanding indebtedness.
The restructuring saw high participation from lenders, with 94.4% for the Lumen TLA/A-1 term loans, 98.5% for the Lumen TLB term loans, and 99.5% for the Level 3 TLB term loans. This move is part of Lumen's strategy to pivot towards growth and transformation.
As a result of the TSA transactions, Lumen's liquidity has been bolstered by a new $1 billion revolving credit facility maturing in June 2028 and the private placement of $1.325 billion of senior secured notes due November 2029. Kate Johnson, president and CEO of Lumen, stated, "The transaction provides the time and capital to fuel our return to growth."
The company's near-term debt maturity profile has also improved, with the amount of maturities outstanding for 2025 to 2026 reduced from approximately $2.1 billion to approximately $600 million, and total maturities outstanding for 2027 reduced from approximately $9.5 billion to approximately $800 million.
Lumen's CFO, Chris Stansbury, expressed gratitude to stakeholders for their support during the restructuring process. The company's advisors in the transaction were Guggenheim Securities, LLC and Wachtell, Lipton, Rosen & Katz.
Lumen Technologies focuses on connecting people, data, and applications through its network capabilities, which include metro connectivity, long-haul data transport, edge cloud, security, and managed services.
This strategic financial move is expected to provide Lumen with increased financial flexibility as it continues to execute its business transformation plans. The details of the transactions can be found in the company's Current Report on Form 8-K, which will be filed with the SEC. This article is based on a press release statement.
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