Lumen Technologies (LUMN) adds $825M revolver with 2029 maturity and covenants
Rhea-AI Filing Summary
Lumen Technologies, Inc. entered into a new Revolving Credit Agreement providing a revolving credit facility with commitments of $825 million. The facility matures on April 14, 2029 and replaces the revolving commitments under Lumen’s March 22, 2024 superpriority revolver, which were reduced to zero and terminated.
Borrowings bear interest, at Lumen’s option, at Term SOFR plus 2.75% or a base rate plus 1.75%, with margins adjustable under a leverage-based pricing grid. Certain Lumen subsidiaries and Level 3 entities provide unconditional guarantees, some secured by liens on substantially all of their assets, and Qwest and its subsidiaries provide an unsecured guarantee of collection.
From the fiscal quarter ended June 30, 2026, Lumen must maintain a maximum total net leverage ratio of 5.25:1.00 and a minimum interest coverage ratio of 2.00:1.00. The agreement includes customary covenants and events of default, allowing lenders to accelerate outstanding loans upon default.
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Insights
Lumen secures $825M revolver with leverage covenants and replaces its prior superpriority facility.
The new $825 million revolving credit facility gives Lumen Technologies committed liquidity through April 14, 2029. Pricing is set at Term SOFR plus 2.75% or base rate plus 1.75%, with margins tied to the company’s total net leverage ratio.
Guarantees from Lumen subsidiaries, Level 3 entities (up to $150 million) and Qwest, including liens on substantially all assets for some guarantors, provide lenders with significant structural protection. In exchange, Lumen accepts maintenance covenants: maximum total net leverage of 5.25:1.00 and minimum interest coverage of 2.00:1.00 starting with the quarter ended June 30, 2026.
Terminating the prior superpriority revolving/Term A facility and replacing it with this structure reshapes the debt stack but does not by itself indicate a change in earnings or cash generation. The actual impact will depend on Lumen’s future borrowing levels and its ability to operate within the leverage and coverage tests.
8-K Event Classification
Key Figures
Key Terms
Revolving Credit Agreement financial
Term SOFR financial
total net leverage ratio financial
interest coverage ratio financial
unconditional guarantee financial
event of default financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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| Item 1.01 | Entry into a Material Definitive Agreement. |
On April 14, 2026, Lumen Technologies, Inc., a Louisiana corporation (“Lumen”), as borrower, the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent, entered into the Revolving Credit Agreement (the “Credit Agreement”) providing for a revolving credit facility with commitments of $825 million.
Lumen does not provide security under the Credit Agreement but certain of Lumen’s subsidiaries have provided or, in certain cases after receiving necessary regulatory approvals, will provide an unconditional guarantee of payment of Lumen’s obligations (such entities, the “Lumen Guarantors”) and certain of such guarantees will be secured by a lien on substantially all of the assets of the applicable Lumen Guarantors. Level 3 Parent, LLC, a Delaware limited liability company (“Level 3 Parent”), Level 3 Financing, Inc., a Delaware corporation (“Level 3”), and certain of Level 3’s subsidiaries have provided or, in certain cases after receiving necessary regulatory approvals, will provide, an unconditional guarantee of payment of Lumen’s obligations under the Credit Agreement of up to $150 million, secured by a lien on substantially all of their assets (such entities, the “Level 3 Collateral Guarantors”). The guarantee by the Level 3 Collateral Guarantors may be reduced or terminated under certain circumstances. Qwest Corporation, a Colorado corporation (“Qwest”), and certain of its subsidiaries will provide an unsecured guarantee of collection of Lumen’s obligations under the Credit Agreement (collectively with Qwest, the “Qwest Guarantors”).
Borrowings under the Credit Agreement bear interest, at Lumen’s option, at a rate equal to either (i) Term SOFR (subject to a 0.00% floor) plus 2.75% for Term SOFR loans or (ii) a base rate plus 1.75% for base rate loans. The foregoing interest rates are subject to adjustment based on Lumen’s total net leverage ratio in accordance with the pricing grid in the Credit Agreement. Interest is payable at the end of each interest period. Lumen may prepay amounts outstanding under the Credit Agreement at any time without premium or penalty. The revolving credit facility established under the Credit Agreement matures on April 14, 2029 (subject to a springing maturity in certain circumstances).
Under the Credit Agreement and commencing with the fiscal quarter ended June 30, 2026, Lumen may not permit (i) its maximum total net leverage ratio to exceed 5.25 to 1.00 as of the last day of each fiscal quarter or (ii) its interest coverage ratio as of the last day of any test period to be less than 2.00 to 1.00.
The Credit Agreement contains certain customary affirmative and negative covenants, representations and warranties and events of default (subject, in certain cases, to customary grace and cure periods). If an event of default occurs, the lenders may, among other actions, accelerate the outstanding loans. The Credit Agreement allows Lumen to provide unsecured guarantees to certain notes issued by Qwest and certain Level 3 debt. Lumen may in the future provide unsecured guarantees to certain debt issued by Level 3 in order to simplify its overall reporting obligations.
In connection with entry into the Credit Agreement, the revolving commitments outstanding under the Superpriority Revolving/Term A Credit Agreement, dated as of March 22, 2024, among Lumen, as borrower, the lenders and issuing banks party thereto and Bank of America, N.A., as administrative agent and collateral agent were permanently reduced to zero and terminated.
The foregoing summary of the Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Credit Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information in Item 1.01 of this Form 8-K is hereby incorporated by reference into this Item 2.03.
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| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
The following exhibits are furnished with the above-described Current Report on Form 8-K:
| Exhibit No. |
Description | |
| 10.1 | Revolving Credit Agreement, dated as of April 14, 2026, among Lumen Technologies, Inc., as borrower, the lenders and issuing banks party thereto and Bank of America, N.A., as administrative agent and collateral agent. | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL). | |
| * | Pursuant to Item 601(a)(5) of Regulation S-K, certain schedules and other attachments have been omitted from this filing and will be furnished to the Securities and Exchange Commission supplementally upon request. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Lumen Technologies, Inc. has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned officer hereunto duly authorized.
| LUMEN TECHNOLOGIES, INC. | ||||||
| Dated: April 16, 2026 | By: | /s/ Chris Stansbury | ||||
| Chris Stansbury | ||||||
| President and Chief Financial Officer | ||||||
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