New York, Jan 6, 2026, 2:07 PM ET — Regular session
- Lumen shares rise about 7% in afternoon trade
- Company priced $650 million of additional 8.5% notes to fund debt buybacks
- Investors watch Jan. 7 tender-offer deadline and Feb. 25 Investor Day
Shares of Lumen Technologies (LUMN) climbed about 7% on Tuesday after the telecom firm priced $650 million of additional high-yield bonds tied to a broader debt buyback. The stock was up 54 cents at $8.11 in afternoon trading after earlier touching $8.23.
The move underscores investor focus on Lumen’s debt-management effort, as the company taps markets to retire older obligations and push out maturities. Traders are watching whether the steps lower refinancing risk without tightening cash flow.
Level 3 Financing, a wholly owned unit of Lumen, agreed to sell $650 million of 8.5% senior notes — corporate bonds — due 2036, up from the $600 million previously planned, the company said on Monday. The add-on notes were priced at 101.75% of face value and will mature on Jan. 15, 2036, adding to $1.25 billion of the same notes issued on Dec. 23.
The company said it will use the cash, plus any available liquidity if needed, to buy back second-lien notes — debt secured by collateral but junior to first-lien lenders — that remain outstanding after an early settlement. Level 3 bought about $1.57 billion of those notes in December, and its cash tender offers, which invite bondholders to sell back bonds early for cash, are scheduled to expire at 5 p.m. EST on Jan. 7.
Lumen’s rise outpaced the broader telecom group, which was little changed: the iShares U.S. Telecommunications ETF was up about 0.4% on the day.
Lumen is also preparing to sell its consumer fiber business to AT&T for $5.75 billion in cash, which the companies said is expected to close in the first half of 2026. Chief Financial Officer Chris Stansbury told Reuters at the time the proceeds would cut debt by $4.8 billion and lower annual interest expense by more than $300 million. “The customers are asking us to go faster,” Stansbury said. Reuters
Lumen is scheduled to host an investor day in New York on Feb. 25, with CEO Kate Johnson and Stansbury slated to present, according to the company’s investor-relations website.
But the bond deal and the tender offers hinge on market demand and other closing conditions, and Lumen warned they may not be completed on the terms described. New borrowing at an 8.5% coupon also raises fixed costs if operating performance stumbles.
