Lumen Technologies announced a definitive agreement to sell its Mass Markets fiber-to-the-home business, including Quantum Fiber in eleven states, to AT&T for $5.75 billion in cash. The transaction is expected to close in the first half of 2026, pending necessary approvals.
This divestiture marks a significant step in Lumen's transformation, allowing it to sharpen its focus on enterprise customers and become a leading enterprise digital networking company. Lumen will retain its core national, regional, state, and metro fiber backbone network infrastructure, as well as all enterprise and wholesale fiber customers.
Lumen intends to use the net proceeds of approximately $4.2 billion, along with cash on hand, to pay down approximately $4.8 billion in superpriority debt. This action is expected to reduce annual interest expense by about $300 million and lower Lumen's net debt to adjusted EBITDA ratio from 4.9x to 3.9x, while also reducing Mass Markets fiber-related capital expenditures by approximately $1 billion annually.
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