Lumen Technologies (NYSE: LUMN) issues Level 3 senior notes with change-of-control put
Rhea-AI Filing Summary
Lumen Technologies, Inc., through its subsidiary Level 3 Financing, Inc., is outlining the terms of new senior unsecured notes issued in a private offering. A portion of the net proceeds was used to buy back certain unsecured notes via concurrent tender offers and to pay related fees and expenses.
The notes bear interest from May 21, 2026, with payments due each February 15 and August 15, starting February 15, 2027. They rank equally with other unsubordinated debt of Level 3 Financing and are fully and unconditionally guaranteed on a senior unsecured basis by Level 3 Parent and certain material domestic subsidiaries, with additional guarantees expected after required regulatory approvals.
The notes feature optional redemption rights for Level 3 Financing, including an equity-funded redemption of up to 40% of principal before August 15, 2029, standard make-whole provisions before August 15, 2031, and scheduled call prices thereafter. If specified change of control events occur, holders can require Level 3 Financing to repurchase the notes at 101% of principal plus accrued interest. The indenture also includes customary events of default and restrictive covenants limiting additional indebtedness, liens, and certain corporate actions. The notes and guarantees were sold only to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S, without registration rights.
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Insights
Lumen adds new Level 3 notes with change-of-control protections and standard high-yield covenants.
The disclosure describes senior unsecured notes issued by Level 3 Financing, guaranteed by Level 3 Parent and key domestic subsidiaries. Proceeds helped repurchase other unsecured notes via tender offers, suggesting a refinancing-focused transaction rather than pure incremental leverage, though the excerpt does not state sizes or coupons.
Key creditor protections include change-of-control repurchase at 101% of principal, events of default, and restrictive covenants on additional debt, liens, and certain transactions, all subject to important exceptions and potential termination. Optional redemption features, including an equity-funded redemption of up to 40% of principal before August 15, 2029, and make-whole calls before August 15, 2031, provide issuer flexibility while limiting early call risk for lenders.
The notes are privately placed under Rule 144A and Regulation S without registration rights, so secondary liquidity depends on institutional markets. Future company filings may clarify the aggregate principal amount, pricing, and net leverage impact of this financing and related tender offers.
8-K Event Classification
Key Figures
Key Terms
senior unsecured obligations financial
change of control events financial
events of default financial
restrictive covenants financial
Rule 144A regulatory
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Securities registered pursuant to Section 12(b) of the Act:
| Registrant |
Title of Each Class |
Trading |
Name of Each Exchange on Which Registered | |||
| Lumen Technologies, Inc. | ||||||
| Lumen Technologies, Inc. | N/A |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company
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| Item 1.01 | Entry into a Material Definitive Agreement. |
On May 21, 2026, Level 3 Financing, Inc. (“Level 3 Financing”), a direct wholly-owned subsidiary of Level 3 Parent, LLC (“Parent”), and an indirect wholly-owned subsidiary of Lumen Technologies, Inc. (“Lumen,” “us,” “we” or “our”):
| • | completed its previously-announced offering of $1.00 billion aggregate principal amount of its 7.500% Senior Notes due 2037 (the “Notes”); and |
| • | in connection therewith, entered into an indenture (the “Indenture”) with U.S. Bank Trust Company, National Association, as trustee, dated May 21, 2026, which sets forth the terms of the Notes. |
Level 3 Financing used a portion of the net proceeds from the offering to fund the purchase of certain of its unsecured notes pursuant to the concurrent tender offers and to pay related fees and expenses.
Interest on the Notes accrues from May 21, 2026 and is payable on February 15 and August 15 of each year, beginning on February 15, 2027.
The Notes are senior unsecured obligations of Level 3 Financing, ranking equal in right of payment with all existing and future indebtedness of Level 3 Financing that is not expressly subordinated in right of payment to the Notes and ranking senior in right of payment to all existing and future indebtedness of Level 3 Financing expressly subordinated in right of payment to the Notes. The Notes are effectively subordinated to all existing and future secured obligations of Level 3 Financing, to the extent of the value of the collateral provided by Level 3 Financing securing such obligations, and effectively subordinated to all liabilities, including trade payables, of the subsidiaries of Level 3 Financing that are not guarantors under the Indenture.
The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by Level 3 Parent, and certain of Level 3 Parent’s material domestic subsidiaries which were able to guarantee the Notes without regulatory approval and subject to the receipt of the applicable regulatory approvals, other material domestic subsidiaries of Level 3 Financing will guarantee the Notes. Each such guarantee is a senior unsecured obligation of the applicable guarantor, ranking equal in right of payment with all existing and future indebtedness of such guarantor that is not expressly subordinated in right of payment to the guarantee of such guarantor and ranking senior in right of payment to all existing and future indebtedness of such guarantor that is expressly subordinated in right of payment to the guarantee of such guarantor. Each guarantee is effectively subordinated to all existing and future secured obligations of such guarantor, to the extent of the value of the collateral provided by such guarantor securing such obligations, and effectively subordinated to all liabilities, including trade payables, of the subsidiaries of such guarantor (other than Level 3 Financing) that are not themselves guarantors.
Level 3 Financing may redeem some or all of the Notes at any time prior to August 15, 2031 at a redemption price equal to 100% of their principal amount, plus the applicable “make-whole” premium set forth in the Indenture and accrued and unpaid interest (if any) to, but not including, the date of redemption. Level 3 Financing may redeem some or all of the Notes on or after August 15, 2031 at the redemption prices as set forth in the Indenture, plus accrued and unpaid interest (if any) to, but not including, the date of redemption. In addition, prior to August 15, 2029, Level 3 Financing may also, at its option, redeem up to 40% of the aggregate principal amount of the Notes with an amount not greater than the net cash proceeds from one or more equity offerings at the redemption price specified in the Indenture.
Upon the occurrence of certain specified change of control events, Level 3 Financing will be required, unless it has elected to redeem the Notes as described above, to make an offer to purchase all outstanding Notes at a price in cash equal to 101% of their principal amount on the purchase date, plus accrued and unpaid interest (if any) to, but not including, such purchase date.
The Indenture provides for customary events of default, including, among other things, the (i) failure to pay principal, interest or premium (if any) on the Notes when due, subject to certain grace periods; (ii) failure to perform various specified covenants continued for 90 days after written notice with respect thereto to Level 3 Financing by
the trustee or the holders of at least 30% of the aggregate principal amount of such Notes then outstanding; or (iii) occurrence of certain specified defaults, judgments, bankruptcy proceedings, insolvencies or other events relating to Parent, Level 3 Financing or certain of its significant subsidiaries. In addition, subject to the terms and conditions set forth in the Indenture, if certain specified events of default with respect to the Notes occur and are continuing, the trustee or holders of at least 30% of the aggregate principal amount of the Notes then outstanding may declare the principal of the Notes to be due and payable immediately.
The Indenture contains certain restrictive covenants that limit the incurrence of additional indebtedness, liens and certain other corporate transactions. These covenants are subject to a number of important limitations and exceptions, and are subject to termination upon the occurrence of certain events described in the Indenture.
The Notes and the related guarantees are not and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws in the United States and may not be offered or sold in the United States absent registration or an exemption from the applicable registration requirements. Accordingly, the Notes were offered and sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A promulgated under the Securities Act and to non-U.S. persons outside the United States in accordance with Regulation S promulgated under the Securities Act. Holders of the Notes do not have registration rights.
The foregoing description of the Indenture does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Indenture. A copy of the Indenture is attached as Exhibit 4.1 hereto, which is 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.
Other Information
In reviewing the documents included as exhibits to this Current Report, please note that they are included to provide you with additional information regarding the terms of the Notes and are not intended to provide any other factual or disclosure information about Level 3 Financing, Parent or the other parties thereto. Additional information about Parent may be found elsewhere in its public filings, which are available without charge through the website of the U.S. Securities and Exchange Commission at http://www.sec.gov.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits:
| Exhibit No. |
Description | |
| 4.1 |
Indenture, dated as of May 21, 2026, among Level 3 Parent, LLC and the other guarantors party thereto, Level 3 Financing, Inc., as Issuer, and U.S. Bank Trust Company, National Association, as trustee, relating to the Notes of Level 3 Financing, Inc. | |
| 4.2 |
Form of Notes (included in Exhibit 4.1). | |
| 104 |
Cover Page Interactive Data File (formatted in iXBRL in Exhibit 101). | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Lumen Technologies, Inc. has duly caused this Current Report to be signed on its behalf by the undersigned officer hereunto duly authorized.
| LUMEN TECHNOLOGIES, INC. | ||
| By: | /s/ Chris Stansbury | |
| Chris Stansbury | ||
| President and Chief Financial Officer | ||
Dated: May 21, 2026