Lumen Technologies extends its NOL Rights Plan

Rhea-AI Summary

Lumen Technologies (LUMN) announced the extension of its NOL Rights Plan expiration date from December 1, 2020, to December 1, 2023, approved unanimously by its board. This extension is to safeguard approximately $6.2 billion in federal net operating loss carryforwards, which can help reduce future U.S. federal income tax payments. The shareholders approved the initial plan in 2019 with about 90% support, and the company will seek further approval at the 2021 Annual Meeting. If not approved by December 1, 2021, the plan will terminate.

Positive

• Extension of the NOL Rights Plan protects $6.2 billion in tax assets.
• Unanimous board approval indicates strong internal support for the plan.
• Previous approval from approximately 90% of shareholders demonstrates significant shareholder backing.

Negative

• If shareholder approval is not granted by December 1, 2021, the NOL Rights Plan will terminate, jeopardizing tax loss benefits.

DENVER, Nov. 25, 2020 /PRNewswire/ -- Lumen Technologies* (NYSE: LUMN) announced that  it has extended the expiration date of its Amended and Restated Section 382 Rights Agreement (the "NOL Rights Plan") from Dec. 1, 2020, to Dec. 1, 2023, with the unanimous approval of its board of directors.

The company has extended its NOL Rights Plan through Dec. 1, 2023 to protect its federal net operating loss carryforwards of approximately $6.2 billion as of Dec. 31, 2019, which, if available, can be used to reduce its future payments of U.S. federal income taxes. 

The NOL Rights Plan was approved by the company's shareholders at its 2019 Annual Meeting of Shareholders by approximately 90% of the votes cast. The company intends to submit the extension of the NOL Rights Plan for approval by the company's shareholders at its 2021 Annual Meeting of Shareholders. If shareholder approval is not obtained by Dec. 1, 2021, the NOL Rights Plan will terminate on such date.

Additional information about the extension will be contained in reports on Form 8-K and Form 8-A/A that the company plans to file with the U.S. Securities and Exchange Commission.

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.

Learn more about the Lumen network, edge cloud, security, communication and collaboration solutions and our purpose to further human progress through technology at news.lumen.com, LinkedIn: /lumentechnologies, Twitter: @lumentechco, Facebook: /lumentechnologies, Instagram: @lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen Technologies are registered trademarks of Lumen Technologies LLC in the United States. Lumen Technologies LLC is a wholly-owned affiliate of CenturyLink Inc.

* The Lumen brand was launched on Sept. 14, 2020. As a result, CenturyLink Inc. is referred to as Lumen Technologies, or simply Lumen. The legal name CenturyLink, Inc. is expected to be formally changed to Lumen Technologies, Inc. upon satisfying all applicable legal requirements.

Forward-Looking Statements

Except for historical and factual information, the matters set forth in this release and other of our oral or written statements identified by words such as "estimates," "expects," "anticipates," "believes," "plans," "intends," and similar expressions are forward-looking statements. These forward-looking statements are not guarantees of future results and are based on current expectations only, are inherently speculative, and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected or implied by us in those statements if one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to those referenced from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise. We may change our intentions, strategies or plans without notice at any time and for any reason.

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SOURCE Lumen Technologies

FAQ

What is Lumen Technologies' NOL Rights Plan extension?

Lumen Technologies extended its NOL Rights Plan expiration to December 1, 2023, to protect its $6.2 billion net operating loss.

Why did Lumen Technologies extend its NOL Rights Plan?

The extension aims to safeguard federal net operating loss carryforwards that can reduce future U.S. federal income taxes.

What happens if Lumen Technologies' NOL Rights Plan is not approved by shareholders?

If the extension is not approved by December 1, 2021, the NOL Rights Plan will terminate.

When was Lumen Technologies' NOL Rights Plan initially approved?

The NOL Rights Plan was initially approved by shareholders at the 2019 Annual Meeting.

How much in federal net operating losses does Lumen have?

Lumen Technologies has approximately $6.2 billion in federal net operating loss carryforwards.