Lumen Technologies Advances Financial Strategy to Support AI-Era Infrastructure Growth

Lumen announced that its wholly-owned subsidiary, Level 3 Financing, has closed its previously announced offering of $2.0 billion aggregate principal amount of 6.875% First Lien Notes due 2033. The First Lien Notes have a maturity date of June 30, 2033, and are guaranteed and secured on a first lien basis by Level 3 Parent, LLC, the direct parent of Level 3 Financing, and certain unregulated subsidiaries of the Issuer. Level 3 Financing used the net proceeds from the offering, together with cash on hand, to redeem all $924.522 million aggregate principal amount of Level 3 Financing’s first lien 10.500% Senior Secured Notes due 2030 and all $667.711 million aggregate principal amount of Level 3 Financing’s 10.500% First Lien Notes due 2029, and to partially redeem $166.565 million aggregate principal amount of Level 3 Financing’s 11.000% First Lien Notes due 2029, in each case, including payment of redemption premium, and to pay related fees and expenses.

This latest transaction reflects Lumen’s financial strategy to simplify its capital structure, extend maturities, and reduce its overall cost of capital—driving meaningful interest expense savings and enhancing financial flexibility. These are critical levers as the company builds the digital network services platform that enterprise businesses and public sector agencies need to harness the full potential of AI.

“This successful transaction reflects the market’s confidence in our strategy and long-term vision,” said Chris Stansbury, Executive Vice President and Chief Financial Officer of Lumen Technologies. “We’re executing with discipline to reduce interest expense, extend our maturity runway, and build the financial flexibility to invest in our transformation. As we reposition Lumen for growth, this financing strengthens our ability to deliver the next-generation network services platform that our customers rely on to compete and lead in the AI-powered economy.”

The First Lien Notes are not and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws in the United States and may not be offered or sold in the United States absent registration or an exemption from the applicable registration requirements. Accordingly, the First Lien Notes were offered and sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A promulgated under the Securities Act and to non-U.S. persons outside the United States in accordance with Regulation S promulgated under the Securities Act. Holders of the First Lien Notes do not have registration rights.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, the First Lien Notes, nor will there be any sale of the First Lien Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release does not constitute a notice of redemption with respect to any of Level 3 Financing’s outstanding senior notes.

Source: Lumen media announcement