Thread regarding Lumen Technologies layoffs

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https://seekingalpha.com/article/4635084-lumen-technologies-approaching-key-point

Interesting points once again in the comments section. It seems that we're in default with some of the debt by selling the LATAM sector of the company.

"The debt/covenant discussion right now. These talks with a limited group of bond holders, specifically involve the claim that the use of proceeds from the LATAM sale represent a default under the debt agreements, LUMN disagree that any default has occurred, and their lawyers agree. This disagreement is one of the reasons that bond prices have collapsed. LUMN’s position is that no changes need to happen, but wants to be sensitive to creditor views and may make this an opportunity for a larger discussion about debt maturities. Put simply, this could result in higher interest rates NOW in return for maturity extension. For the company, the tension here is that they would be impacting FCF in the short term. I think these extension would focus on the Revolving Credit and the Term Loans due in 2025 (both of which are senior secured) and would result in higher interest spreads. Bottom line, I don’t believe these talks will result in any default and there is runway for the next three years to get to the 2027 debt refinancing requirement."

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| 1031 views | | 5 replies (last September 15, 2023) | Reply
Post ID: @OP+1oCdLVqD

5 replies (most recent on top)

or add 12ft.io/ in front of URL

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Post ID: @bmj+1oCdLVqD

BofA conference is on the Lumen Investor Web site. Simple registration required...

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Post ID: @ayn+1oCdLVqD

Is the link to the BofA/CFO discussion, on Insidelink?

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Post ID: @tqr+1oCdLVqD

Yes, bottom line, no crisis at the moment. BofA conference with CFO seemed quite persuasive. Easy to listen. Recommended y'all do.

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Post ID: @nat+1oCdLVqD

The fact that insiders are not purchasing shares speaks volumes

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Post ID: @xcx+1oCdLVqD

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