Lumen Technologies, Inc. (NYSE: LUMN) issued an additional $650 million of 8.500% senior notes due 2036 through its wholly‑owned subsidiary, Level 3 Financing, Inc. The notes were priced at 101.750% of principal and will mature on January 15, 2036, matching the terms of the $1.25 billion of senior notes originally issued on December 23, 2025.
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, and for general corporate purposes. The tender offers for the second‑lien notes began on December 8, 2025 and were scheduled to expire on January 7, 2026, allowing Lumen to consolidate its debt structure and reduce exposure to higher‑cost financing.
This financing is a key component of Lumen’s balance‑sheet repair strategy. The company has been actively refinancing debt to lower interest costs and extend maturities, a priority highlighted by the planned sale of its mass‑market fiber business to AT&T for $5.75 billion. The AT&T transaction is expected to close in early 2026 and will free up $4.8 billion of debt, bringing total debt down to just over $13 billion and annualized interest expense to roughly $700 million. The new notes provide liquidity to support that deleveraging and to fund the company’s shift toward AI‑ready network services.
Lumen’s CEO, Kate Johnson, said the company is “building the backbone of the AI economy” and that the refinancing “strengthens our financial position and frees capital for long‑term growth.” CFO Chris Stansbury added that the debt restructuring “marks another milestone in fortifying the balance sheet and freeing up capital to serve our long‑term growth.” Their comments underscore the company’s focus on reducing leverage while investing in high‑margin enterprise and AI‑centric services, which now account for 75% of revenue.
While the debt issuance is a positive step toward reducing leverage, analysts and investors remain cautious because Lumen’s overall debt load remains high and the company has experienced declining revenue and negative net margins in recent years. The refinancing is therefore seen as a necessary but not sufficient measure to restore long‑term financial health.
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