Lumen Technologies closes transactions under support agreement

By Sarah Lizee

Olympia, Wash., March 28 – Lumen Technologies, Inc. completed its amended and restated transaction support agreement on March 22, according to an 8-K filed Thursday with the Securities and Exchange Commission.

As previously reported, on Oct. 31, Lumen entered into a TSA with Level 3 Financing, Inc. and Qwest Corp.

The deal was amended in January with the support of a significantly larger group of creditors across more of Lumen’s capital structure, with creditors representing over $12.5 billion of the outstanding debt and commitments of Lumen and its subsidiaries and representing over 70% of the total Lumen and Level 3 debt maturing through 2027.

The amended TSA outlined the following transactions:

• $1.325 billion in new-money long-term senior secured first lien debt by Level 3;

• An approximately $1 billion new revolving credit facility at Lumen;

• The extension of maturities, covenant modifications and rate increases of certain secured and unsecured debt at Lumen and Level 3 through a series of transactions with certain consenting parties; and

• The repayment of certain of Lumen’s and Qwest’s debt.

“This agreement represents another positive step forward in the Lumen turnaround story and creates substantial runway for the company to achieve its financial and capital structure goals. The TSA transactions, when completed, will provide Lumen significant flexibility as we continue to execute on our transformation journey of disrupting telecom,” president and chief executive officer Kate Johnson said in a January press release.

Guggenheim Securities, LLC is serving as financial adviser, and Wachtell, Lipton, Rosen & Katz is serving as legal adviser to Lumen.

Lumen, formerly known as CenturyLink Inc., is a Monroe, La.-based enterprise technology platform.

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