Lumen enters debt restructuring with $1.2B new money and maturity extensions from creditors

Lumen Technologies, Inc.

Transaction support agreement with creditors holding over $7B of Lumen and Level 3 debt to extend maturities and provide new money.
Creditors backstop $1.2B new long-term senior secured first-lien debt at Level 3 Financing.
Cleansing info: expects ~$900M tax refund, ~$700M cash in Q1 2024; cumulative benefit ~$600M through 2027.
Free cash flow expected toward low end of previously disclosed range; Level 3 contributes 40-44% of consolidated EBITDA.
Qwest Corp. and subsidiaries to provide unsecured guarantee of certain Lumen secured debt, subject to regulatory approvals.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Lumen Technologies, Inc. entered into Transaction Support Agreement with Level 3 Financing, Inc., Qwest Corporation, and certain holders of the debt of the Company and Level 3 valued at Comprehensive maturity extensions, $1,200 million in new money long term senior secured first lien i (effective 2023-10-31).

Action: entry
Counterparty: Level 3 Financing, Inc., Qwest Corporation, and certain holders of the debt of the Company and Level 3
Value: Comprehensive maturity extensions, $1,200 million in new money long term senior secured first lien i
Effective: 2023-10-31

Exact text from the filing

On October 31, 2023, Lumen Technologies, Inc. (the “ Company ”) entered into a Transaction Support Agreement (together with all exhibits, annexes and schedules thereto, the “ Transaction Support Agreement ”) with (i) Level 3 Financing, Inc. (“ Level 3 ”), (ii) Qwest Corporation (“ Qwest ”, together with the Company and Level 3, the “ Company Parties ”), and (iii) certain holders of the debt of the Company and Level 3 (such holders, the “ Consenting Parties ” and together with the Company Parties, the “ Parties ”) to define their commitments to effect a series of transactions to provide the Company and Level 3 with comprehensive maturity extensions while allowing them to maintain sufficient operating liquidity and financial flexibility.

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Lumen Technologies, Inc. filing history →

Source: SEC EDGAR

accession 0001193125-23-267280

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