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Long-Term Debt and Credit Facilities | 9 Months Ended
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Sep. 30, 2023
Debt Disclosure [Abstract] |
Long-Term Debt and Credit Facilities | Long-Term Debt and Credit Facilities 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) |  | September 30, 2023 |  | December 31, 2022
|  |  |  |  | (Dollars in millions)
Senior Secured Debt: (2) |  |  |  |  |  |  |
Lumen Technologies, Inc. |  |  |  |  |  |  |
Revolving Credit Facility(3) | SOFR + 2.00% |  | 2025 |  | $ | 75 |  |  | — |
Term Loan A(4) | SOFR + 2.00% |  | 2025 |  | 948 |  |  | 991 |
Term Loan A-1(4) | SOFR + 2.00% |  | 2025 |  | 271 |  |  | 283 |
Term Loan B(5) | SOFR + 2.25% |  | 2027 |  | 3,903 |  |  | 3,941 |
Senior notes | 4.000% |  | 2027 |  | 1,250 |  |  | 1,250 |
Subsidiaries: |  |  |  |  |  |  |
Level 3 Financing, Inc. |  |  |  |  |  |  |
Tranche B 2027 Term Loan(6) | SOFR + 1.75% |  | 2027 |  | 2,411 |  |  | 2,411 |
Senior notes | 3.400% - 10.500% |  | 2027 - 2030 |  | 2,425 |  |  | 1,500 |
Senior Notes and Other Debt: |  |  |  |  |  |  |
Lumen Technologies, Inc. |  |  |  |  |  |  |
Senior notes | 4.500% - 7.650% |  | 2025 - 2042 |  | 2,143 |  |  | 3,722 |
Subsidiaries: |  |  |  |  |  |  |
Level 3 Financing, Inc. |  |  |  |  |  |  |
Senior notes | 3.625% - 4.625% |  | 2027 - 2029 |  | 3,940 |  |  | 3,940 |
Qwest Corporation |  |  |  |  |  |  |
Senior notes | 6.500% - 7.750% |  | 2025 - 2057 |  | 1,986 |  |  | 1,986 |
Term loan(7) | SOFR + 2.50% |  | 2027 |  | 215 |  |  | 215 |
Qwest Capital Funding, Inc. |  |  |  |  |  |  |
Senior notes | 6.875% - 7.750% |  | 2028 - 2031 |  | 192 |  |  | 192 |
Finance lease and other obligations(8) | Various |  | Various |  | 291 |  |  | 317 |
Unamortized discounts, net |  |  |  |  | (3) |  |  | (7) |
Unamortized debt issuance costs |  |  |  |  | (152) |  |  | (169) |
Total long-term debt |  |  |  |  | 19,895 |  |  | 20,572 |
Less current maturities |  |  |  |  | (155) |  |  | (154) |
Long-term debt, excluding current maturities |  |  |  |  | $ | 19,740 |  |  | 20,418 |
______________________________________________________________________ (1)As of September 30, 2023. (2)See Note 7—Long-Term Debt and Credit Facilities in our Annual Report on Form 10-K for the year ended December 31, 2022 for a description of certain parent or subsidiary guarantees and liens securing this debt. (3)Revolving Credit Facility had an interest rate of 7.450% as of September 30, 2023. (4)Term Loans A and A-1 had interest rates of 7.431% and 6.384% as of September 30, 2023 and December 31, 2022, respectively. (5)Term Loan B had interest rates of 7.681% and 6.634% as of September 30, 2023 and December 31, 2022, respectively. (6)The Level 3 Tranche B 2027 Term Loan had interest rates of 7.181% and 6.134% as of September 30, 2023 and December 31, 2022, respectively. (7)The Qwest Corporation Term Loan had interest rates of 7.931% and 6.640% as of September 30, 2023 and December 31, 2022, respectively. (8)Excludes finance lease obligations of our EMEA business classified as held for sale. Long-Term Debt Maturities Set forth below is the aggregate principal amount of our long-term debt as of September 30, 2023 (excluding unamortized discounts, net, and unamortized debt issuance costs), maturing during the following years. As a result of classifying our EMEA business as held for sale on our September 30, 2023 consolidated balance sheet, the amounts presented below do not include maturities of the finance lease obligations of that business. See Note 2—Planned Divestiture of the EMEA Business.
| (Dollars in millions)
2023 (remaining three months) | $ | 40 |
2024 | 157 |
2025 | 1,739 |
2026 | 498 |
2027 | 9,386 |
2028 and thereafter | 8,230 |
Total long-term debt | $ | 20,050 |
Exchange Offers and Repurchases Pursuant to exchange offers that commenced on March 16, 2023 (the “Exchange Offers”), on March 31, 2023, Level 3 Financing, Inc. issued $915 million of its 10.500% Senior Secured Notes due 2030 (the “10.500% Notes”) in exchange for $1.535 billion of Lumen’s outstanding senior unsecured notes. On April 17, 2023, in connection with the Exchange Offers, Level 3 Financing, Inc. issued an additional $9 million of its 10.500% Notes in exchange for $19 million of Lumen's outstanding senior unsecured notes. All exchanged notes were concurrently cancelled. These transactions resulted in a $630 million net reduction in the aggregate principal amount of Lumen’s consolidated indebtedness. In addition to the above described exchange offers, we repurchased $24 million aggregate principal amount of Lumen's outstanding senior unsecured notes during the first quarter of 2023. These above-described transactions resulted in an aggregate gain of $618 million during the nine months ended September 30, 2023. The following table sets forth the aggregate principal amount of each series of Lumen’s senior unsecured notes retired during the nine months ended September 30, 2023, in connection with the above-described exchange transactions:
Debt | Period of Reduction | Aggregate principal (amounts in millions)
5.625% Senior Notes, Series X, due 2025 | Q1 2023 | $ | 48 |
7.200% Senior Notes, Series D, due 2025 | Q1 2023 | 21 |
5.125% Senior Notes due 2026 | Q1 2023 | 291 |
6.875% Debentures, Series G, due 2028 | Q1 2023 | 52 |
5.375% Senior Notes due 2029 | Q1 2023 | 275 |
4.500% Senior Notes due 2029 | Q1 2023 | 556 |
7.600% Senior Notes, Series P, due 2039 | Q1 2023 | 161 |
7.650% Senior Notes, Series U, due 2042 | Q1 2023 | 131 |
5.625% Senior Notes, Series X, due 2025 | Q2 2023 | 1 |
4.500% Senior Notes due 2029 | Q2 2023 | 2 |
7.600% Senior Notes, Series P, due 2039 | Q2 2023 | 3 |
7.650% Senior Notes, Series U, due 2042 | Q2 2023 | 13 |
Total |  | $ | 1,554 |
Level 3 Financing, Inc.’s obligations under the 10.500% Notes are guaranteed on a secured basis by its direct parent, Level 3 Parent, LLC, and certain of its material domestic subsidiaries that guarantee the term loan under Level 3 Financing, Inc.’s existing senior secured credit facility and existing senior secured notes (the “Issuer’s Secured Debt”). Such guarantees are secured by liens on substantially the same collateral that is pledged to secure the Issuer’s Secured Debt. Revolving Credit Facility Borrowings and Repayments During the three months ended September 30, 2023 , Lumen borrowed $150 million from, and made repayments of $275 million to, its revolving credit facility, and during the nine months ended September 30, 2023, Lumen borrowed $675 million from, and made repayments of $600 million to, its revolving credit facility. During the third quarter of 2023, we issued approximately $110 million of letters of credit under our revolving credit facility, which reduced our borrowing capacity available thereunder by the same amount. As of September 30, 2023, these issued letters of credit were undrawn. Covenants Certain of our debt instruments contain affirmative and negative covenants. Debt at Lumen Technologies, Inc. and Level 3 Financing, Inc. contains more extensive covenants including, among other things and subject to certain exceptions, restrictions on the ability to declare or pay dividends, repay certain other indebtedness, create liens, incur additional indebtedness, make investments, engage in transactions with affiliates, dispose of assets and merge or consolidate with any other person. Also, Lumen Technologies, Inc. and certain of its affiliates will be required to offer to purchase certain of their respective outstanding debt under defined circumstances in connection with specified "change of control" transactions. Certain of our debt instruments contain cross-payment default or cross-acceleration provisions. Compliance As of September 30, 2023, Lumen Technologies, Inc. believes it and its subsidiaries were in compliance with the provisions and financial covenants in their respective material debt agreements in all material respects.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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