Lumen Technologies Strengthens Financial Position With $2 Billion Note Offering to Fuel AI-Driven Network Expansion

Lumen Technologies Strengthens Financial Position to Boost AI-Era Infrastructure

Lumen Technologies, a leading digital network services company, has announced a strategic financial move designed to support its growth and transformation in the AI-driven digital infrastructure space. The company's subsidiary, Level 3 Financing, has completed a $2.0 billion offering of 6.875% First Lien Notes due 2033.

This issuance, secured by Level 3 Parent, LLC and other subsidiaries, replaces earlier, higher-cost debt by redeeming $924.52 million of 10.500% Senior Secured Notes due 2030, $667.71 million of 10.500% First Lien Notes due 2029, and partially redeeming $166.56 million of 11.000% First Lien Notes due 2029. The move also covers associated redemption premiums and fees.

Financial Strategy Focused on Capital Structure Optimization

Lumen’s latest financing is a clear effort to simplify its capital structure, extend debt maturities, and reduce interest expenses. These actions aim to improve financial flexibility, an essential factor as the company invests in next-generation network services tailored for enterprise and public sector customers leveraging AI technologies.

Extending maturities to 2033 allows Lumen to lower its cost of capital, freeing up resources for innovation and growth. This strategy is critical for meeting the increasing demand for secure, scalable digital infrastructure that supports AI applications.

Leadership Perspective

Chris Stansbury, Lumen’s Executive Vice President and Chief Financial Officer, emphasized the transaction's importance: it signals market confidence in Lumen’s long-term vision and strengthens the company’s ability to execute its transformation strategy. By reducing interest costs and extending the maturity profile, Lumen is enhancing its capacity to deliver advanced network services vital for competitiveness in an AI-powered economy.

About Lumen

Lumen Technologies connects people, data, and applications with secure, high-speed digital infrastructure. The company supports AI adoption by providing extensive metro connectivity, long-haul data transport, edge cloud solutions, security, managed services, and digital platforms. These capabilities enable businesses and public agencies to meet current needs and prepare for future digital demands.

Important Information on the Offering

The First Lien Notes are not registered under the Securities Act of 1933 and were offered exclusively to qualified institutional buyers and non-U.S. persons in compliance with applicable regulations. This release does not constitute an offer or solicitation to purchase these notes in any jurisdiction where such actions are unlawful.

Forward-Looking Statements

Lumen’s statements about future expectations involve risks and uncertainties that could lead to actual results differing from those anticipated. Factors such as credit ratings, financial position, market conditions, and regulatory changes may influence outcomes. The company does not commit to updating forward-looking statements publicly.

For finance professionals interested in how companies like Lumen manage capital to fuel AI infrastructure growth, this transaction offers insight into effective debt management and strategic financing aligned with technological trends.

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