Latham Represents Lumen Technologies on US$2.4 Billion Term Loan Repricing and US$425 Million First Lien Notes Offering

Lumen Technologies, Inc. (NYSE: LUMN) (Lumen) has announced the successful completion of a repricing transaction of Level 3 Financing, Inc.’s (Level 3) US$2.4 billion credit facilities at Term SOFR + 3.25%. The new pricing represents a reduction of 100 basis points, resulting in US$24 million in annual interest expense savings. Additionally, in connection with the refinancing transaction certain other modifications were made to the covenants in the Credit Agreement to provide additional flexibility to Level 3.

Earlier this month, Level 3 also raised an additional US$425 million aggregate principal amount of its 7.000% First Lien Notes due 2034 at par. Level 3 used the net proceeds from the offering, together with cash on hand, to redeem all US$373 million aggregate principal amount of Level 3’s 10.750% First Lien Notes due 2030, including payment of redemption premium, and to pay related fees and expenses. In addition to extending maturities by more than three years, the transaction reduced Level 3’s annual interest expense by an additional US$10 million.

Latham & Watkins LLP represents Lumen in the transactions with a Capital Markets and Liability Management team led by New York partners John Sobolewski and Benjamin Stern, with associates Shawn Quinn, Gabriella Tang, and Samantha Pannone, and a banking team led by New York partner Kendra Kocovsky, with associates Amrita Mukherjee, Ben Bussmann, and Michelle Cha.