Lumen Technologies, Inc. (NYSE: LUMN) recently announced the early results and amendments of its previously announced tender offers and consent solicitations. The company's wholly-owned subsidiary, Level 3 Financing, Inc., has amended the tender offers to remove the former aggregate maximum tender cap and provide that all existing second lien notes that are validly tendered after the early tender deadline but prior to the expiration date will be eligible to receive the total consideration.
As of the early tender deadline, approximately $2.124 billion aggregate principal amount of existing second lien notes were validly tendered and not validly withdrawn, with approximately $1.5 billion accepted for purchase. Here's a breakdown of the principal amount tendered at the early tender deadline and the percentage of aggregate principal amount outstanding participated:
- 4.000% Second Lien Notes due 2031: $432,115,000 tendered, representing 95.50% of aggregate principal amount outstanding, with a total consideration of $915.00 per $1,000 principal amount.
- 3.875% Second Lien Notes due 2030: $433,855,600 tendered, representing 94.68% of aggregate principal amount outstanding, with a total consideration of $922.50 per $1,000 principal amount.
- 4.500% Second Lien Notes due 2030: $702,834,200 tendered, representing 98.73% of aggregate principal amount outstanding, with a total consideration of $952.50 per $1,000 principal amount.
- 4.875% Second Lien Notes due 2029: $555,596,000 tendered, representing 91.65% of aggregate principal amount outstanding, with a total consideration of $985.00 per $1,000 principal amount.
The tender offers will expire at 5:00 p.m. EST on January 7, 2026, unless extended, earlier expired, or terminated. The purchase price plus accrued interest for the pro rated early 2029 notes and any other existing second lien notes that are validly tendered on or before the expiration date and accepted for purchase will be paid by Level 3 Financing in same-day funds promptly following the expiration date on the final settlement date, which is currently expected to occur on January 9, 2026.
In addition to the applicable total consideration, accrued and unpaid interest from the last interest payment date up to, but not including, the early settlement date, which is currently expected to occur on December 23, 2025, will be paid by Level 3 Financing in same-day funds on the early settlement date or final settlement date, as applicable, on all validly tendered existing second lien notes accepted for purchase in the tender offers.
The proposed majority amendments and the collateral release and 2/3 amendment will not become operative until the final settlement date for the respective series of notes.
These developments reflect significant investor participation and provide insights into the company's debt management strategy and the market's response to its tender offers and consent solicitations. As a result of these announcements, the company's shares have moved 4.08% on the market, and are now trading at a price of $8.16. For the full picture, make sure to review Lumen Technologies's 8-K report.
