Lumen Technologies (NYSE: LUMN) shares jumped over 2% on Thursday after securing a new agreement with lenders, extending debt maturities to at least 2029, and providing access to an extra $2 billion in capital.
On Thursday, Lumen Technologies announced a new agreement with a consortium of lenders. This deal extends the maturity of the company’s debt to at least 2029 and grants access to over $2 billion in new capital. The agreement involves creditors holding a combined debt exceeding $12.5 billion for Lumen and its subsidiaries. The company highlighted broader creditor support compared to its previous October deal.
Lumen has stated that it holds over 70% of the debt, due by 2027, for the company and its subsidiary, Level 3, which was acquired in 2017.
Lumen will secure $1.325 billion in financing through the issuance of new long-term debt and access to an additional revolving loan of approximately $1 billion as part of the agreement.
Lumen’s Chief Financial Officer Chris Stansbury said,
“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, a company that offers cloud-based communication services and IT solutions, with its extensive network comprising fiber optic and copper cables, anticipates finalizing the deal in the first quarter of 2024.
It reported a long-term debt of $19.74 billion at the end of the third quarter.
Lumen Technologies (NYSE: LUMN) Stock Reaction
LUMN stock rose 2.22% on Thursday. Traders had exchanged hands with 47,496,918 (47.49 million) shares compared to the average daily trading volume of 17.28 million.
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