Lumen Technologies Completes TSA Transactions, Enabling Transformation Strategy

Lumen announced the successful completion of the transactions contemplated by the previously announced amended and restated transaction support agreement (the "TSA") that the Company, Level 3 Financing, Inc. ("Level 3") and Qwest Corporation entered into with certain of the Company's creditors.

Lumen achieved participation in the TSA transactions of over $15 billion of outstanding indebtedness and commitments of the Company and its subsidiaries. With respect to the term loan transactions open to all lenders, the Company achieved 94.4% participation 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. The broad support for the TSA transactions across the Company's capital structure demonstrates creditors' and stakeholders' belief in Lumen's turnaround plan and pivot to growth strategy.

Following the closing of the TSA transactions, Lumen is in a strengthened liquidity position, including as a result of closing a new approximately $1 billion revolving credit facility maturing in June 2028 and completing the private placement of $1.325 billion aggregate principal amount of senior secured notes due November 2029.

"This is a significant milestone that clears the runway for our transformation and signals confidence in our strategy and progress," said Kate Johnson, president and CEO of Lumen. "The transaction provides the time and capital to fuel our return to growth."

"This process over the last several months could not have been possible without the support of many stakeholders. We sincerely thank the Lumen team for their dedication and continued commitment to the Company during this process," said Chris Stansbury, Chief Financial Officer of Lumen. "We also thank our customers, vendors and partners for their unwavering trust in the business and our future."

Lumen's near-term debt maturity profile has significantly 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.

Source: Lumen media announcement