Lumen in deal with lenders to extend debt maturities, raise over $2 bln in capital
Technology
Lumen in deal with lenders to extend debt maturities, raise over $2 bln in capital
(Reuters) - Lumen Technologies (LUMN.N) said on Thursday it has signed a deal with a group of lenders that will push out its debt maturities to at least 2029 and provide it with access to more than $2 billion of fresh capital.
The agreement is with creditors that represent more than $12.5 billion of debt of Lumen and its subsidiaries, the company said, adding the deal was supported by a "significantly larger" group of creditors than that in its previous deal in October.
It represents over 70% of the total debt, maturing through 2027, of the company and its unit Level 3, which it acquired in 2017, Lumen said.
The deal will provide Lumen with $1.325 billion of financing through new long-term debt and provide access to a new revolving loan of about $1 billion.
"The broad support for this agreement across our capital structure is a clear indication of the confidence in our transformation strategy and our vision, which allows us to focus on our path forward," Lumen's Chief Financial Officer Chris Stansbury said.
Lumen, which has a network of fiber optic and copper cables and provides cloud-based communication services and IT solutions, said it expects to complete the deal in the first quarter of 2024.
It posted a long-term debt of $19.74 billion at the end of the third quarter.
