Lumen Technologies and its subsidiary Qwest said they have closed exchange offers on two large blocks of long-dated debt, swapping nearly $1.08 billion of old notes for new securities with shorter maturities.
Qwest accepted $831.9 million of its 6.5% notes due 2056 and $551.9 million of its 6.75% notes due 2057, for total accepted principal of about $1.384 billion across the two series. In return, it will issue $831.9 million of new 6.500% notes due 2051 and $551.9 million of new 6.750% notes due 2052.
The 2056 note exchange was split into two denominations: $515.3 million of the old notes were tendered for the $25-denominated new 2051 notes, and $316.6 million were tendered for the $1-denominated new 2051 notes. For the 2057 notes, $381.5 million were exchanged into new 2052 notes in $25 denominations, while $170.4 million were exchanged into the $1-denominated new 2051 notes.
Alongside the exchanges, Qwest paid cash consent fees of $2.08 million tied to the 2056 notes and $1.38 million tied to the 2057 notes, for total cash payments of about $3.46 million.
Before the offer, Qwest had $977.5 million of 6.5% notes due 2056 outstanding and $660.0 million of 6.75% notes due 2057 outstanding. That means holders tendered about 84% of the 2056 issue and about 84% of the 2057 issue.
Qwest said it received the required majority consents for both note series, allowing it to amend the old indentures. The new notes are expected to be delivered on June 11, 2026. As a result of these announcements, the company's shares have moved -3.42% on the market, and are now trading at a price of $8.18. If you want to know more, read the company's complete 8-K report here.
