News and Analysis
Lumen recuts proposal with $1bn revolver and $375m of 1L notes
- Max Frumes
- +Kartikeya Dar
•2 min read
Lumen Technologies has announced that it revised its transaction support agreement with a broadened group of creditors holding $12.5bn of the company’s debt, up from $7bn in October.
We’ll publish more on this later, but for now here are the documents: 8-K; Revised TSA
Changes in the amended TSA include:
- The issuance of an incremental $375m of 11% first lien notes due 2029 at Level 3 (of which $125m is new money in addition to the $1.2bn initially proposed) for various parts of the transaction
- Instead of exchanging the current $2.2bn revolver at Lumen Technologies, now the deal will pay down the $75m outstanding on the revolver and issue a new $1bn superpriority revolver.
- Serta, Chewy and J Crew protections in the covenants package appended to the TSA have also been bolstered
According to the announcement, Lumen also plans to make certain term loan transactions available to all holders, many of which had previously been non-pro rata.
Lumen expects to complete the transactions in the first quarter of 2024 and then “may assess potential follow-on transactions with respect to non-participating debt,” according to the release.
