Lumen Technologies, Inc. (NYSE: LUMN) has announced that its wholly‑owned subsidiary, Level 3 Financing, Inc., will issue an additional $600 million of 8.500% senior notes due 2036. The new notes will be issued as a single series with the same terms as the $1.25 billion of 8.500% senior notes originally issued on December 23, 2025.
The proceeds from the offering will be used to purchase any remaining Second Lien Notes that were not acquired during earlier tender offers, to pay accrued and unpaid interest, fees and expenses related to those purchases, and for general corporate purposes. By refinancing these notes, Lumen expands its debt capacity and improves liquidity, positioning the company to accelerate its debt‑reduction program and fund capital‑expenditure plans that support its transition to a high‑growth, enterprise‑focused network business.
Lumen’s management has framed the financing as a key step in the broader strategy to divest its legacy Mass Markets fiber business to AT&T and to concentrate resources on high‑margin enterprise services, including AI‑driven networking and network‑as‑a‑service offerings. CEO Kate Johnson noted that “shifting our focus to enterprise customers and AI‑centric infrastructure is essential for long‑term growth, and this financing gives us the flexibility to execute that transition.”
The $5.75 billion sale of the Mass Markets business, announced in May 2025, is expected to close in the first half of 2026 and will free up capital that can be deployed toward expanding data‑center connectivity and AI workloads. Lumen’s recent debt‑restructuring efforts—including a $7 billion debt restructuring in November 2023 and a $9 billion transaction‑support agreement in January 2024—have already reduced interest expense and improved cash‑flow generation, setting the stage for this additional note issuance.
With capital expenditures projected to rise to $4.1–$4.3 billion in 2025 to support the growing demand for AI and cloud services, the new notes provide a low‑cost, long‑term funding source that aligns with Lumen’s goal of maintaining a strong balance sheet while investing in high‑return growth areas. The financing also signals confidence to investors that Lumen is actively managing its debt profile and pursuing a clear strategic focus on enterprise networking.
The issuance is a routine, yet material, corporate action that enhances Lumen’s financial flexibility and supports its ongoing transformation toward a more profitable, technology‑driven business model.
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