Long-Term Debt and Credit Facilities (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Long-term Debt Including Unamortized Discounts and Premiums

The following table reflects the consolidated long-term debt of Lumen Technologies, Inc. and its subsidiaries as of the dates indicated below, including unamortized discounts and premiums and unamortized debt issuance costs:


	Interest Rates(1)	Maturities(1)	March 31, 2024		December 31, 2023
			(Dollars in millions)
Secured Senior Debt: (2)
Lumen Technologies, Inc.
New Parent Facilities:
Series A Revolving Credit Facility(3)	SOFR + 4.00%	2028	$	—	—
Series B Revolving Credit Facility(4)	SOFR + 6.00%	2028	—		—
Term Loan A(5)	SOFR + 6.00%	2028	372		—
Term Loan B-1(6)	SOFR + 2.35%	2029	1,625		—
Term Loan B-2(6)	SOFR + 2.35%	2030	1,625		—
Former Parent Facilities:
Term Loan B(7)	SOFR + 2.25%	2027	57		3,891
Other Facilities(8)	SOFR + 2.00%	2025	—		1,399
Superpriority Notes	4.125%	2029 - 2030	812		—
Former Parent Secured Notes	4.000%	2027	—		1,250
Subsidiaries
Level 3 Financing, Inc.
New Level 3 Facilities:
Term Loan B-1(9)	SOFR + 6.56%	2029	1,199		—
Term Loan B-2(9)	SOFR + 6.56%	2030	1,199		—
Former Level 3 Facility(10)	SOFR + 1.75%	2027	12		2,411
First Lien Notes(11)	10.500% to 11.000%	2029 - 2030	3,846		925
Second Lien Notes	3.875% to 4.875%	2029 - 2031	2,229		—
Former Level 3 Senior Notes	3.400% to 3.875%	2027 - 2029	—		1,500
Unsecured Senior Notes and Other Debt:
Lumen Technologies, Inc.
Senior notes(12)	4.000% - 7.650%	2025 - 2042	2,113		2,143
Subsidiaries:
Level 3 Financing, Inc.
Senior notes(13)	3.400% - 4.625%	2027 - 2029	1,865		3,940
Qwest Corporation
Senior notes	6.500% - 7.750%	2025 - 2057	1,986		1,986
Term loan(14)	SOFR + 2.50%	2027	—		215
Qwest Capital Funding, Inc.
Senior notes	6.875% - 7.750%	2028 - 2031	192		192
Finance lease and other obligations	Various	Various	279		285
Unamortized discounts, net			(492)		(4)
Unamortized debt issuance costs			(242)		(145)
Total long-term debt			18,677		19,988
Less current maturities			(86)		(157)
Long-term debt, excluding current maturities			$	18,591	19,831

______________________________________________________________________

(1)As of March 31, 2024. All references to "SOFR" refer to the Secured Overnight Financing Rate.

(2)As discussed further below in this Note, the debt listed under the caption “Senior Secured Debt” is either guaranteed by affiliates of the issuer, secured, or both. As discussed further in footnotes 12 and 13, we reclassified in the table above certain notes that were guaranteed, secured, or both prior to the Effective Date from “secured” to “unsecured” in light of amendments that released such prior guarantees and security interests.

(3)Series A Revolving Credit Facility had an interest rate of 8.050%, as of March 31, 2024.

(4)Series B Revolving Credit Facility had an interest rate of 10.050% as of March 31, 2024.

(5)Term Loan A had an interest rate of 11.329% as of March 31, 2024.

(6)Term Loan B-1 and B-2 each had an interest rate of 7.739% as of March 31, 2024.

(7)Term Loan B had an interest rate of 7.695% and 7.720% as of March 31, 2024 and December 31, 2023, respectively.

(8)Reflects revolving credit facility and term loan A and A-1 debt issued under the Former Parent Facilities, which had interest rates of 7.464% and 7.470%, respectively, as of December 31, 2023.

(9)The Level 3 Term Loan B-1 and B-2 each had an interest rate of 11.889% as of March 31, 2024.

(10)Reflects Level 3 Tranche B 2027 Term Loan issued under the Former Level 3 Facility, which had an interest rate of 7.195% and 7.220% as of March 31, 2024 and December 31, 2023, respectively.

(11)Includes Level 3's 10.500% Senior Secured Notes due 2030 issued in early 2023, the terms of which have been amended to be consistent with Level 3's first lien notes issued on March 22, 2024.

(12)The total of these notes at March 31, 2024 includes the remaining aggregate principal amount due under the Former Parent Secured Notes, the terms of which were amended on March 22, 2024 to release the guarantees of such debt and certain security interests relating thereto.

(13)The total for these notes at March 31, 2024 includes the remaining aggregate principal amount due under the Former Level 3 Secured Notes, the terms of which were amended on March 22, 2024 to release the guarantees of such debt and certain security interests relating thereto.

(14)The Qwest Corporation Term Loan had an interest rate of 7.970% as of December 31, 2023.

Schedule of Maturities of Long-Term Debt

Set forth below is the aggregate principal amount of our long-term debt as of March 31, 2024 (excluding unamortized discounts, net, and unamortized debt issuance costs), maturing during the following years.


	(Dollars in millions)
2024 (remaining nine months)	$	64
2025	542
2026	238
2027	847
2028	1,162
2029 and thereafter	16,558
Total long-term debt	$	19,411

Schedule of Debt Repayments and Exchanges

The following table sets forth the aggregate principal amount of each of Lumen's consolidated debt arrangements that were partially or fully paid in exchange for cash or newly-issued debt during the first quarter of 2024 in connection with the TSA Transaction:


	Aggregate Principal Amount (in millions)
Debt	Repayment		Exchange
Lumen Technologies, Inc.
Term Loan A	$	933	—
Term Loan A-1	266		—
Term Loan B	575		3,259
5.125% Senior Notes due 2026	116		147
4.000% Senior Notes due 2027	153		865
Level 3 Financing, Inc.
Term Loan B	—		2,398
3.400% Senior Notes due 2027	—		668
3.875% Senior Notes due 2029	—		678
4.625% Senior Notes due 2027	—		606
4.250% Senior Notes due 2028	—		712
3.625% Senior Notes due 2029	—		458
3.750% Senior Notes due 2029	—		453
Qwest Corporation
Senior Term B Loan	215		—
Total	$	2,258	10,244

Schedule of Debt Issuances

The following table sets forth the aggregate principal amount of debt issued by Lumen or Level 3 during the first quarter of 2024 in connection with the TSA Transactions:


New Debt Issuances(1)		Aggregate Principal Amount as of March 31, 2024 (in millions)
Lumen Technologies, Inc.
Term Loan A(2)		$	372
Term Loan B-1(2)	Exchange	1,625
Term Loan B-2(2)	Exchange	1,625
4.125% Superpriority Notes due 2029-2030	Exchange	812
Level 3 Financing, Inc.
Term Loan B-1	Exchange	1,199
Term Loan B-2	Exchange	1,199
10.500% First Lien Notes due 2029	Exchange	668
10.750% First Lien Notes due 2029	Exchange	678
11.000% First Lien Notes due 2029		1,375
11.000% First Lien Notes due 2029	Exchange	200
4.875% Second Lien Notes due 2029	Exchange	606
4.500% Second Lien Notes due 2030	Exchange	712
3.875% Second Lien Notes due 2030	Exchange	458
4.000% Second Lien Notes due 2031	Exchange	453
Total		$	11,982

______________________________________________________________________

(1)Except for the Term Loan A and as otherwise noted herein with respect to Level 3's 11.000% first Lien Notes due 2029, all of the new debt listed in this table was issued in exchange for previously-issued debt of Lumen or Level 3.

(2)Reflected approximately $13 million of term loan installment payments made between March 22, 2024 and March 31, 2024.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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