Lumen Technologies entered into an amended and restated transaction support agreement (TSA) with a larger group of creditors, giving it what it said is “significant financial flexibility.”
These creditors now represent over $12.5 billion of the company's and its subsidiaries' outstanding indebtedness and commitments. They represent over 70% of the aggregate of Lumen and Level 3 debt maturing through 2027.
Lumen’s amended TSA is supported by a significantly larger group of creditors across more of Lumen's capital structure than the agreement previously announced on October 31, 2023.
The TSA will extend debt maturities to primarily 2029 and beyond, provide $1.33 billion of financing to the company through new long-term debt and provide access to a new revolving $1 billion credit facility. After meeting closing conditions, Lumen expects to complete the transactions contemplated by the TSA in the first quarter of 2024.
The service provider plans to make certain term loan transactions available to all holders concerning the consummation of such transactions.
"This agreement represents another positive step forward in the Lumen turnaround story and creates a substantial runway for the Company to achieve its financial and capital structure goals. The TSA transactions, when completed, will provide Lumen significant flexibility as we continue to execute on our transformation journey of disrupting telecom," said Kate Johnson, president and CEO of Lumen.
In December, Lumen asked its creditors to give it additional time to complete its restructuring process. The telco asked for the deadline to be pushed to Jan 31.
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Sean Buckley
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