Lumen Technologies Inc. Announces Upsized Senior Notes Offering
Lumen Technologies Inc. (NYSE: LUMN) announced that its wholly‑owned subsidiary, Level 3 Financing, Inc., will issue $1.25 billion in 8.500 % Senior Notes due 2036. This represents a $500 million increase over the size previously disclosed.
Key Terms of the Offering
| Feature | Detail |
|---|---|
| Issuer | Level 3 Financing, Inc., a wholly‑owned subsidiary of Lumen Technologies. |
| Principal Amount | $1.25 billion (aggregate). |
| Coupon | 8.500 % per annum, payable semi‑annually. |
| Maturity | January 15, 2036. |
| Pricing | 100 % of principal; fully and unconditionally guaranteed by Level 3 Parent, LLC (the direct parent of Level 3 Financing) and certain unregulated subsidiaries. |
| Unsubordinated & Unsecured | The notes are issued on an unsubordinated and unsecured basis. |
The notes will be fully and unconditionally guaranteed on an unsubordinated and unsecured basis by Level 3 Parent, LLC, the direct parent of Level 3 Financing, and certain unregulated subsidiaries. Upon issuance, the notes will be fully and unconditionally guaranteed, on an unsubordinated and unsecured basis, by Level 3 Parent, LLC and certain unregulated subsidiaries.
Use of Proceeds
Level 3 Financing intends to use the net proceeds primarily for:
- Capital Expenditure – including the purchase or lease of network infrastructure and related equipment.
- Debt Reduction – repayment of existing debt obligations related to its telecommunications assets.
- General Corporate Purposes – including working capital and other corporate needs.
Market Context
- Lumen’s closing stock price on 2025‑12‑09 was $8.69 per share, positioned below its 52‑week low of $3.01 and near its 52‑week high of $11.95.
- The company’s market capitalization stands at approximately $8.72 billion.
- Lumen’s price‑earnings ratio is ‑5.03, reflecting negative earnings per share.
Regulatory and Investor Impact
The upsize of the senior notes offering signals Lumen’s continued emphasis on strengthening its balance sheet and funding network expansion projects. The guaranteed nature of the notes provides investors with a relatively low‑risk debt instrument, while the high coupon reflects the company’s strategy to attract capital in a competitive market.
The announcement aligns with Lumen’s broader objective of providing digital solutions—including communication, network security, cloud services, and managed services—to customers worldwide. By securing long‑term debt at a fixed rate, Lumen positions itself to support ongoing investments in its diversified telecommunications services while maintaining flexibility for future growth initiatives.
