Lumen Technologies Completes Private Offering of Senior Notes

Rhea-AI Summary

Lumen Technologies completed a private offering of $1.0 billion in 5.375% Senior Notes due 2029. The net proceeds, along with available cash, will be used to repay its 6.45% Senior Notes, Series S, due 2021. This strategic move is aimed at optimizing the company's debt structure. The notes were placed privately without registration under the Securities Act of 1933.

Positive

• Repayment of high-interest 6.45% Senior Notes improves debt profile.
• Successful raising of $1.0 billion strengthens liquidity.

Negative

• The issuance of new notes may lead to shareholder dilution.
• Private placement limits market visibility and investor access.

DENVER, June 15, 2021 /PRNewswire/ -- Lumen Technologies (NYSE: LUMN) announced that it completed its previously-announced private offering of $1.0 billion aggregate principal amount of its 5.375% Senior Notes due 2029 (the "2029 Notes").

Lumen used the net proceeds from the offering, together with cash on hand, to repay at maturity its outstanding 6.45% Senior Notes, Series S, due 2021. 

The 2029 Notes were privately placed without being registered under the Securities Act of 1933, as amended.

About Lumen

Lumen is guided by our belief that humanity is at its best when technology advances the way we live and work. With approximately 450,000 route fiber miles and serving customers in more than 60 countries, we deliver the fastest, most secure platform for applications and data to help businesses, government and communities deliver amazing experiences.

Lumen and Lumen Technologies are registered United States trademarks of CenturyLink Communications LLC (doing business as Lumen Technologies Group), which is a wholly-owned subsidiary of Lumen Technologies, Inc.

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SOURCE Lumen Technologies

FAQ

What are the details of Lumen Technologies' Senior Notes offering?

Lumen Technologies completed a private offering of $1.0 billion in 5.375% Senior Notes due 2029.

How will Lumen use the proceeds from the Senior Notes offering?

The proceeds will be used to repay the outstanding 6.45% Senior Notes, Series S, due 2021.

What impact does the Senior Notes offering have on Lumen's shareholders?

The offering may lead to shareholder dilution, as it is a new issuance of debt.

When are the 5.375% Senior Notes due?

The 5.375% Senior Notes are due in 2029.

Was the Senior Notes offering registered with the SEC?

No, the notes were privately placed without registration under the Securities Act of 1933.