LUMN · Lumen Technologies, Inc.

Lumen Technologies secured a new $825 million revolving credit facility, providing essential liquidity through April 14, 2029, with flexible prepayment terms and no borrower security, relying instead on subsidiary guarantees including secured commitments from Level 3 entities up to $150 million and unsecured support from Qwest. Interest pricing starts at Term SOFR plus 2.75% or base rate plus 1.75%, with margins adjusting down to as low as Term SOFR plus 2.25% or base plus 1.25% based on total net leverage below 2.50x, alongside commitment fees from 0.30% to 0.40%. Key investor focus centers on financial maintenance covenants kicking in with the fiscal quarter ended June 30, 2026, capping leverage at 5.25x and mandating 2.00x interest coverage, which will test Lumen's ability to manage debt amid operational pressures. The deal replaces and terminates the prior Superpriority Revolving/Term A facility from March 2024, streamlining Lumen's capital structure while permitting unsecured guarantees to Qwest and potential Level 3 debt for reporting efficiency. Customary events of default and covenants apply, with lender acceleration rights, underscoring the facility's role in supporting near-term financial flexibility without immediate equity dilution.