Lumen Bolsters Runway to Execute Transformation; New Agreement With Creditors To Provide Company With Financial Flexibility
Portfolio Pulse from Benzinga Newsdesk
Lumen Technologies, Inc. (NYSE:LUMN) has entered into an amended transaction support agreement with creditors representing over $12.5 billion of debt. The agreement extends debt maturities to 2029 and beyond, provides $1.325 billion in new long-term debt, and access to a new $1 billion revolving credit facility. The TSA is expected to close in Q1 2024, subject to conditions. This move is part of Lumen's transformation and turnaround plan, aiming to disrupt the telecom industry. The company filed a Current Report on Form 8-K with the SEC detailing the agreement.
January 25, 2024 | 2:13 pm
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POSITIVE IMPACT
Lumen Technologies has amended its agreement with creditors, extending debt maturities and securing additional financing, which is a positive step in its transformation journey.
The amended agreement with creditors is likely to be viewed positively by investors as it provides Lumen with significant financial flexibility and a longer runway to execute its transformation plan. Extending debt maturities and securing new financing reduces immediate financial pressures and demonstrates creditor confidence in the company's future. This could lead to a short-term positive impact on LUMN's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100