Lumen Technologies Subsidiary Prices $650M Add-On Senior Notes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Should l Buy LUMN?
Source: seekingalpha
- Financing Amount: Lumen Technologies' subsidiary Level 3 successfully prices $650 million in add-on senior notes, demonstrating the company's capital market capabilities and investor confidence.
- Use of Proceeds: The funds will be utilized to optimize the capital structure and support future business expansion, which is expected to enhance financial flexibility and provide funding for subsequent investments.
- Market Reaction: The market has responded positively to Lumen's financing initiative, indicating investor recognition of its future growth potential, which may have a favorable impact on the stock price.
- Strategic Implications: This financing allows Lumen Technologies to maintain a competitive edge in the telecom industry, further solidifying its market share and driving long-term sustainable growth.
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Analyst Views on LUMN
Wall Street analysts forecast LUMN stock price to rise
6 Analyst Rating
0 Buy
5 Hold
1 Sell
Hold
Current: 8.000
Low
7.00
Averages
8.33
High
11.00
Current: 8.000
Low
7.00
Averages
8.33
High
11.00
About LUMN
Lumen Technologies, Inc. is a networking company, which connects people, data, and applications quickly and securely. The Company is engaged in providing an array of integrated products and services to its domestic and global business customers and its domestic mass market customers. It operates through two segments: Business segment and Mass Markets segment. The Company conducts its operations under four brands: Lumen, which is its flagship brand for serving the enterprise and wholesale markets, including its Private Connectivity Fabric (PCF) network architecture, Lumen Digital products, and its priority services including Edge, Network-as-a-Service and cybersecurity; Quantum Fiber, which provides fiber-based broadband services to residential and small business customers; CenturyLink, which is engaged in providing primarily mass-marketed copper-based communications services, and Black Lotus Labs, which is its cyberthreat research and intelligence arm.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- User Growth Potential: The anticipated addition of 8 million users will increase AT&T's broadband customer base from 10.6 million to 13.6 million, representing a 30% growth, providing a new revenue source and growth momentum amid a saturated wireless market.
- Earnings Outlook Improvement: The CFO indicated during the earnings call that adjusted EPS is expected to range between $2.25 and $2.35 in 2026, with a projected double-digit CAGR through 2028, instilling confidence in investors, especially in the current market environment.
- Enhanced Dividend Payment Capacity: With a payout ratio slightly above 50%, the upcoming profit improvements will bolster AT&T's ability to maintain dividend payments and may pave the way for the resumption of annual dividend increases that were suspended in 2022.
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- Fiber Expansion: AT&T plans to increase its fiber service coverage from 32 million to 40 million customer locations by the end of 2026, representing a 25% year-over-year growth that will significantly enhance its market share and competitive position.
- Customer Growth Potential: The addition of 8 million new users is expected to boost AT&T's fiber customer base from 10.6 million to 13.6 million, translating to a 30% increase that could generate nearly $3 billion in annual revenue, alleviating pressures from a saturated wireless market.
- Earnings Outlook Improvement: The CFO projects adjusted EPS to range between $2.25 and $2.35 in 2026, with a double-digit CAGR expected over the next three years, indicating growth potential even in a highly competitive market.
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- CEO Stock Purchase: CEO Kate Johnson capitalized on the post-earnings sell-off by purchasing 78,685 shares at an average price of $6.35, totaling approximately $500,000, reflecting her confidence in the company's turnaround strategy.
- Financial Outlook: While the fourth-quarter adjusted earnings per share exceeded expectations, revenue only met them, with management projecting full-year free cash flow between $1.2 billion and $1.4 billion, including $300 million to $450 million in non-recurring tax refunds.
- Debt Management: Lumen successfully reduced its debt burden by selling its consumer-focused fiber-to-the-home business for $4.8 billion, bringing its debt-to-EBITDA ratio down to 3.8 times, although overall revenue and profit growth remains a critical focus.
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