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Long-Term Debt and Credit Facilities | 12 Months Ended
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Dec. 31, 2024
Debt Disclosure [Abstract] |
Long-Term Debt and Credit Facilities | Note 7—Long-Term Debt and Credit Facilities At December 31, 2024, most of our outstanding consolidated debt had been incurred by us or one of the following three subsidiaries, each of which has borrowed funds either on a standalone basis or as part of a separate restricted group with certain of its subsidiaries: •Level 3 Financing, Inc. ("Level 3 Financing"), including its parent guarantor Level 3 Parent, LLC, and certain subsidiary guarantors; •Qwest Corporation ("Qwest"); and •Qwest Capital Funding, Inc., including its parent guarantor, Qwest Communications International Inc. Each of these borrowers or borrowing groups has entered into a credit agreement with certain financial institutions or other institutional lenders or issued senior notes. Certain of these debt instruments are described further below. The following table reflects the consolidated long-term debt of Lumen Technologies, Inc. and its subsidiaries as of the dates indicated below, including unamortized premiums (discounts) and unamortized debt issuance costs:
|  |  |  |  | As of December 31,
| Interest Rates(1) |  | Maturities(1) |  | 2024 |  | 2023
|  |  |  |  | (Dollars in millions)
Senior Secured Debt: (2) |  |  |  |  |  |  |
Lumen Technologies, Inc. |  |  |  |  |  |  |
Series A Revolving Credit Facility | SOFR + 4.00% |  | 2028 |  | $ | — |  |  | — |
Series B Revolving Credit Facility | SOFR + 6.00% |  | 2028 |  | — |  |  | — |
Term Loan A(3) | SOFR + 6.00% |  | 2028 |  | 357 |  |  | — |
Term Loan B-1(4) | SOFR + 2.35% |  | 2029 |  | 1,606 |  |  | — |
Term Loan B-2(4) | SOFR + 2.35% |  | 2030 |  | 1,606 |  |  | — |
Term Loan B(5) | SOFR + 2.25% |  | 2027 |  | 56 |  |  | 3,891 |
Other Facilities(6) | N/A |  | N/A |  | — |  |  | 1,399 |
Superpriority Notes | 4.125% - 10.000% |  | 2029 - 2032 |  | 1,247 |  |  | — |
Former Parent Secured Notes(7) | N/A |  | N/A |  | — |  |  | 1,250 |
Subsidiaries: |  |  |  |  |  |  |
Level 3 Financing, Inc. |  |  |  |  |  |  |
Term Loan B-1(8) | SOFR + 6.56% |  | 2029 |  | 1,199 |  |  | — |
Term Loan B-2(8) | SOFR + 6.56% |  | 2030 |  | 1,199 |  |  | — |
Former Level 3 Facility(9) | SOFR + 1.75% |  | 2027 |  | 12 |  |  | 2,411 |
First Lien Notes(10) | 10.500% - 11.000% |  | 2029 - 2030 |  | 3,846 |  |  | 925 |
Second Lien Notes | 3.875% - 10.000% |  | 2029 - 2032 |  | 2,579 |  |  | — |
Former Level 3 Senior Notes(11) | N/A |  | N/A |  | — |  |  | 1,500 |
Unsecured Senior Notes and Other Debt: |  |  |  |  |  |  |
Lumen Technologies, Inc. |  |  |  |  |  |  |
Senior notes(12) | 4.000% - 7.650% |  | 2025 - 2042 |  | 1,428 |  |  | 2,143 |
Subsidiaries: |  |  |  |  |  |  |
Level 3 Financing, Inc. |  |  |  |  |  |  |
Senior notes(13) | 3.400% - 4.625% |  | 2027 - 2029 |  | 964 |  |  | 3,940 |
Qwest Corporation |  |  |  |  |  |  |
Senior notes | 6.500% - 7.750% |  | 2025 - 2057 |  | 1,973 |  |  | 1,986 |
Former Term Loan(14) | N/A |  | N/A |  | — |  |  | 215 |
Qwest Capital Funding, Inc. |  |  |  |  |  |  |
Senior notes | 6.875% - 7.750% |  | 2028 - 2031 |  | 192 |  |  | 192 |
Finance lease and other obligations | Various |  | Various |  | 254 |  |  | 285 |
Unamortized discounts, net |  |  |  |  | (395) |  |  | (4) |
Unamortized debt issuance costs |  |  |  |  | (217) |  |  | (145) |
Total long-term debt |  |  |  |  | 17,906 |  |  | 19,988 |
Less current maturities |  |  |  |  | (412) |  |  | (157) |
Long-term debt, excluding current maturities |  |  |  |  | $ | 17,494 |  |  | 19,831 |
_______________________________________________________________________________ N/A - Not applicable (1)As of December 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 secured by assets of the issuer, guaranteed on a secured or unsecured basis by certain affiliates of the issuer, or both. As discussed further in footnotes 12 and 13 below, we reclassified in the table above certain notes that were guaranteed, secured, or both prior to the TSA Effective Date (as defined below) from “secured” to “unsecured” in light of amendments that released such security interests. (3)Term Loan A had an interest rate of 10.573% as of December 31, 2024. (4)Term Loan B-1 and B-2 each had an interest rate of 7.037% as of December 31, 2024. (5)Term Loan B had an interest rate of 6.937% and 7.720% as of December 31, 2024 and December 31, 2023, respectively. (6)Reflects revolving credit facility and term loan A and A-1 debt issued under the Former Parent Facilities (as defined below), which were due in 2025 and had interest rates of 7.464% and 7.470%, respectively, as of December 31, 2023. (7)Former Parent Secured Notes were due in 2027 and had an interest rate of 4.000% as of December 31, 2023, prior to being cancelled on the TSA Effective Date (as defined below). (8)The Level 3 Term Loan B-1 and B-2 each had an interest rate of 11.133% as of December 31, 2024. (9)Reflects Level 3 Tranche B 2027 Term Loan issued under the Former Level 3 Facility (as defined below), which had an interest rate of 6.437% and 7.220% as of December 31, 2024 and December 31, 2023, respectively. (10)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. (11)Former Level 3 Senior Notes were due in 2027 - 2029 and had an interest rates of 3.400% - 3.875% as of December 31, 2023, prior to being cancelled on the TSA Effective Date (as defined below). (12)The total amount of these notes at December 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 that could be released in accordance with their indentures and the security interests relating thereto. (13)The total amount for these notes at December 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 security interests relating thereto. (14)The Qwest Corporation Term Loan was due in 2027 and had an interest rate of 7.970% as of December 31, 2023, prior to being cancelled on the TSA Effective Date (as defined below). Long-Term Debt Maturities Set forth below is the aggregate principal amount of our long-term debt as of December 31, 2024 (excluding unamortized discounts, net, and unamortized debt issuance costs) maturing during the following years.
| (Dollars in millions)
2025 | $ | 412 |
2026 | 96 |
2027 | 250 |
2028 | 738 |
2029 | 7,203 |
2030 and thereafter | 9,819 |
Total long-term debt | $ | 18,518 |
2024 Debt Transactions Cash Tender Offers Pursuant to cash tender offers that commenced on November 12, 2024 (the "Cash Tender Offers"), in November 2024 we reduced the aggregate principal amount of our consolidated indebtedness by approximately $393 million. In conjunction with the Cash Tender Offers, we recorded a gain of $33 million including an offset of immaterial third-party fees in our aggregate Net gain on early retirement of debt in Other income (expense), net in our consolidated statement of operations for the year ended December 31, 2024. The following table sets forth the aggregate principal amount of each series of senior notes of Lumen and Level 3 Financing retired in exchange for cash in November 2024 in connection with the Cash Tender Offers:
Debt | Aggregate Principal Amount (in millions)
Lumen Technologies, Inc. |
5.625% Senior Notes, Series X, due 2025 | $ | 33 |
7.200% Senior Notes, Series D, due 2025 | 3 |
5.125% Senior Notes due 2026 | 5 |
4.000% Senior Secured Notes due 2027 (unsecured) | 4 |
6.875% Debentures, Series G, due 2028 | 24 |
Level 3 Financing, Inc. |
3.400% Senior Secured Notes due 2027 (unsecured) | 1 |
4.625% Senior Notes due 2027 | 48 |
4.250% Senior Notes due 2028 | 275 |
Total | $ | 393 |
Exchange Offers Pursuant to exchange offers that commenced on September 3, 2024 (the "Exchange Offers"), on September 24, 2024: •Lumen Technologies issued approximately $438 million aggregate principal amount of its newly-issued 10.000% Secured Notes due 2032 (the "New Lumen Notes") and paid approximately $14 million cash (excluding accrued and unpaid interest payable with respect to the exchange) in exchange for approximately $491 million aggregate principal amount of four series of its outstanding senior unsecured notes, maturing between 2026 and 2029 (which were concurrently cancelled), and •Level 3 Financing issued approximately $350 million aggregate principal amount of its newly-issued 10.000% Second Lien Notes due 2032 in exchange for $357 million aggregate principal amount of two series of its outstanding senior unsecured notes maturing in 2027 (which were concurrently cancelled). These transactions reduced the aggregate principal amount of Lumen's consolidated indebtedness by approximately $60 million. The Company determined that the Exchange Offers constituted a debt modification consistent with ASC 470 and recorded no gain or loss. In conjunction with the Exchange Offers, we recorded $17 million of fees to Selling, general and administrative expense in our consolidated statements of operations for the year ended December 31, 2024. The following table sets forth the aggregate principal amount of each series of senior unsecured notes of Lumen and Level 3 Financing exchanged and retired on September 24, 2024 in connection with the Exchange Offers:
Debt | Aggregate Principal Amount (in millions)
Lumen Technologies, Inc. |
5.125% Senior Notes due 2026 | $ | 137 |
4.000% Senior Secured Notes due 2027 (unsecured) | 188 |
6.875% Debentures, Series G, due 2028 | 80 |
4.500% Senior Notes due 2029 | 86 |
Level 3 Financing, Inc. |
3.400% Senior Secured Notes due 2027 (unsecured) | 77 |
4.625% Senior Notes due 2027 | 280 |
Total | $ | 848 |
Transaction Support Agreement Transactions On March 22, 2024 (the "TSA Effective Date"), Lumen Technologies, Level 3 Financing, Qwest and a group of creditors holding a majority of our consolidated debt completed transactions contemplated under the amended and restated transaction support agreement ("TSA") that such parties entered into on January 22, 2024 (the "TSA Transactions"), including the termination, repayment or exchange of previous commitments and debt and the issuance of new term loan facilities, notes, and revolving credit facilities. 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 Transactions:
| Aggregate Principal Amount (in millions)
Debt | Repaid |  | Exchanged
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 |  |  |
Term Loan B | 215 |  |  | — |
Total | $ | 2,258 |  |  | 10,244 |
The following table sets forth the aggregate principal balance as of December 31, 2024 of the debt issued by Lumen or Level 3 Financing in connection with the TSA Transactions:
New Debt Issuances(1) |  | Aggregate Principal Amount as of December 31, 2024 (in millions)
Lumen Technologies, Inc. |  |  |
Term Loan A(2) |  |  | $ | 357 |
Term Loan B-1(2) |  |  | 1,606 |
Term Loan B-2(2) |  |  | 1,606 |
4.125% Superpriority Notes due 2029-2030 |  |  | 808 |
Level 3 Financing, Inc. |  |  |
Term Loan B-1 |  |  | 1,199 |
Term Loan B-2 |  |  | 1,199 |
10.500% First Lien Notes due 2029 |  |  | 668 |
11.000% First Lien Notes due 2029 |  |  | 1,575 |
4.875% Second Lien Notes due 2029 |  |  | 606 |
10.750% First Lien Notes due 2030 |  |  | 678 |
4.500% Second Lien Notes due 2030 |  |  | 712 |
3.875% Second Lien Notes due 2030 |  |  | 458 |
4.000% Second Lien Notes due 2031 |  |  | 453 |
Total |  |  | $ | 11,925 |
______________________________________________________________________ (1)Except for Lumen's Term Loan A and $1.375 billion of Level 3 Financing's 11.000% First Lien Notes due 2029, all of the new debt listed in this table was issued in the first quarter of 2024 in exchange for previously-issued debt of Lumen or Level 3 Financing in connection with the TSA Transactions. (2)Reflects approximately $66 million of term loan installment payments and paydowns made between the TSA Effective Date and December 31, 2024. In evaluating the terms of the TSA Transactions, we determined that for certain of our creditors the new debt instruments were substantially different than pre-existing debt and therefore constituted a non-cash extinguishment of old debt for Lumen Technologies and Level 3 Financing of $744 million and $2.6 billion and the establishment of new debt for which we recorded a $275 million gain on extinguishment in the first quarter of 2024. This new debt was recorded at fair value generating a reduction to debt of $492 million which was included in our aggregate Net gain on early retirement of debt of $348 million, recognized in Other income (expense), net in our consolidated statement of operations for the year ended December 31, 2024. The remaining creditors’ newly-issued debt was not substantially different under the terms of the TSA Transactions and was treated under modification accounting rules. In conjunction with the TSA Transactions, we paid $209 million in lender fees and $174 million in additional third-party costs. Of these amounts, we offset $157 million of lender fees against the gain on extinguishment and recorded $112 million in third-party costs to Selling, general and administrative expense in our consolidated statement of operations for the year ended December 31, 2024. In accordance with GAAP provisions for modification and extinguishment accounting, $52 million in lender fees and $62 million in third-party costs, respectively, were capitalized and will be amortized over the terms of the newly-issued indebtedness. Repurchases of Debt Instruments During 2024, we repurchased various debt instruments on the open market. These repurchases resulted in an aggregate net gain of $40 million which is included in our aggregate Net gain on early retirement of debt in Other income (expense), net in our consolidated statement of operations for the year ended December 31, 2024. The following table sets forth the aggregate principal amount of each series of notes and term loans repurchased during the year ended December 31, 2024:
Debt | Principal Amount Repurchased (in millions)
Lumen Technologies, Inc. |
Term Loan A | $ | 2 |
Term Loan B-1 | 7 |
Term Loan B-2 | 7 |
5.625% Senior Notes, Series X, due 2025 | 70 |
7.200% Senior Notes, Series D, due 2025 | 13 |
6.875% Senior Notes, Series G, due 2028 | 7 |
4.500% Senior Notes due 2029 | 24 |
4.125% Superpriority Notes due 2029-2030 | 3 |
7.600% Senior Notes due 2039 | 5 |
7.650% Senior Notes due 2042 | 6 |
Level 3 Financing, Inc. |
4.250% Senior Notes due 2028 | 34 |
3.625% Senior Notes due 2029 | 81 |
3.750% Sustainability-Linked Senior Notes due 2029 | 86 |
3.875% Senior Secured Notes due 2029 (unsecured) | 18 |
Qwest Corporation |
7.250% Senior Notes due 2025 | 13 |
Total | $ | 376 |
2023 Debt Modification Transactions Exchange Offers Pursuant to exchange offers that commenced on March 16, 2023 (the “2023 Exchange Offers”), on March 31, 2023, Level 3 Financing 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 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 net gain of $618 million for the year ended December 31, 2023. The following table sets forth the aggregate principal amount of each series of Lumen’s senior unsecured notes retired during the year ended December 31, 2023, in connection with the above-described exchange transactions:
Debt |  | Aggregate principal (amounts in millions)
5.625% Senior Notes, Series X, due 2025 |  | $ | 49 |
7.200% Senior Notes, Series D, due 2025 |  | 21 |
5.125% Senior Notes due 2026 |  | 291 |
6.875% Debentures, Series G, due 2028 |  | 52 |
5.375% Senior Notes due 2029 |  | 275 |
4.500% Senior Notes due 2029 |  | 558 |
7.600% Senior Notes, Series P, due 2039 |  | 164 |
7.650% Senior Notes, Series U, due 2042 |  | 144 |
Total |  | $ | 1,554 |
Credit Facility Borrowings and Repayments During 2023, Lumen borrowed $925 million from, and made repayments of $725 million to, the Former Lumen Facilities. 2022 Borrowings and Repayments During 2022, Lumen borrowed $2.4 billion from, and made repayments of $2.6 billion to, the Former Lumen Facilities. Interest Expense Interest expense includes interest on total long-term debt. The following table presents the amount of gross interest expense, net of capitalized interest:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
| (Dollars in millions)
Interest expense: |  |  |  |  |
Gross interest expense | $ | 1,548 |  |  | 1,269 |  |  | 1,398 |
Capitalized interest | (176) |  |  | (111) |  |  | (66) |
Total interest expense | $ | 1,372 |  |  | 1,158 |  |  | 1,332 |
Lumen Credit Agreements Superpriority Revolving/Term A Credit Agreement On the TSA Effective Date, Lumen, as borrower, the lenders party thereto and Bank of America, as administrative agent and collateral agent, entered into the Superpriority Revolving/Term A Credit Agreement (the “RCF/TLA Credit Agreement”), providing for: •a superpriority “first out” series A revolving credit facility with original commitments of approximately $489 million (the “Series A Revolving Credit Facility”); •a superpriority “second out” series B revolving credit facility with original commitments of approximately $467 million (the “Series B Revolving Credit Facility”, and together with the Series A Revolving Credit Facility, the “Lumen Revolving Credit Facilities”); and •a superpriority secured term loan facility in the amount of approximately $377 million (the “Lumen TLA”). Interest on borrowings under the RCF/TLA Credit Agreement is payable at the end of each interest period at a rate equal to, at Lumen’s option: •for the Series A Revolving Credit Facility, term SOFR (subject to a 2.00% floor) plus 4.00% for term SOFR loans or a base rate plus 3.00% for base rate loans; •for the Series B Revolving Credit Facility, term SOFR (subject to a 2.00% floor) plus 6.00% for term SOFR loans or a base rate plus 5.00% for base rate loans; and •for the Lumen TLA, term SOFR (subject to a 2.00% floor) plus a 6.00% for term SOFR loans or a base rate plus 5.00% for base rate loans. Lumen may prepay amounts outstanding under the Series B Revolving Credit Facility or Lumen TLA at anytime without premium or penalty. If no amounts are outstanding under the Series B Revolving Credit Facility, Lumen may prepay amounts outstanding under the Series A Revolving Credit Facility without premium or penalty. Both of the Lumen Revolving Credit Facilities mature on June 1, 2028 (in each case subject to a springing maturity in certain circumstances). The Lumen TLA matures on June 1, 2028 and requires Lumen to make quarterly amortization payments of 1.25% of the initial principal amount and certain specified mandatory prepayments upon the occurrence of certain transactions. At December 31, 2024, no borrowings were outstanding under Lumen’s (i) Series A Revolving Credit Facility, with commitments of approximately $489 million, or (ii) Series B Revolving Credit Facility, with commitments of approximately $465 million. Superpriority Term B Credit Agreement On the TSA Effective Date, Lumen, as borrower, the lenders party thereto, Wilmington Trust, National Association (“WTNA”), as administrative agent, and Bank of America, as collateral agent, entered into a Superpriority Term B Credit Agreement (the “TLB Credit Agreement”), providing for: •a superpriority secured term loan facility in a principal amount of approximately $1.6 billion maturing April 15, 2029 (the “Lumen TLB-1”); and •a superpriority secured term loan facility in a principal amount of approximately $1.6 billion maturing April 15, 2030 (the “Lumen TLB-2”, and together with the Lumen TLB-1, the “Lumen TLB”). Interest on borrowings under the TLB Credit Agreement is payable at the end of each interest period at a rate equal to, at Lumen’s option, adjusted term SOFR (subject to a 0% floor) plus 2.35% for term SOFR loans or a base rate plus 1.35% for base rate loans. The Lumen TLB requires Lumen to make quarterly amortization payments of 0.25% of the initial principal amount and certain specified mandatory prepayments upon the occurrence of certain transactions. Amounts outstanding under the Lumen TLB may be prepaid at any time without premium or penalty. Former Facilities In connection with entering into the RCF/TLA Credit Agreement, all revolving commitments under Lumen’s amended and restated credit agreement dated January 31, 2020 (the “Former Parent Facilities”) were terminated and substantially all of the debt issued thereunder was repaid. Level 3 Credit Agreements Credit Agreement dated March 22, 2024 On the TSA Effective Date, Level 3 Financing, as borrower, Level 3 Parent, LLC. the lenders party thereto and WTNA, as administrative agent and collateral agent, entered into a credit agreement (the “New Level 3 Credit Agreement”), providing for: •a secured term B-1 loan facility in the principal amount of approximately $1.2 billion maturing April 15, 2029; and •a secured term B-2 loan facility in the principal amount of approximately $1.2 billion maturing April 15, 2030. Interest on borrowings under the New Level 3 Credit Agreement is payable at the end of each interest period at a rate equal to, at Level 3 Financing’s option, term SOFR (subject to a 2.00% floor) plus 6.56% for term SOFR loans or a base rate plus 5.56% for base rate loans. Amounts outstanding under the New Level 3 Credit Agreement may be prepaid at any time, subject to a premium of (i) 2.00% of the aggregate principal amount if prepaid on or prior to the 12-month anniversary of the TSA Effective Date and (ii) 1.00% of the aggregate principal amount if prepaid after the 12-month anniversary of the TSA Effective Date and on or prior to the 24-month anniversary of the TSA Effective Date. The New Level 3 Facilities require Level 3 Financing to make certain specified mandatory prepayments upon the occurrence of certain transactions. Former Facility In connection with entering into the New Level 3 Credit Agreement, substantially all of the indebtedness issued under Level 3 Financing’s amended and restated credit agreement dated as of November 29, 2019 (the “Former Level 3 Facility”) was repaid. Senior Notes of Lumen and its Subsidiaries The Company’s consolidated indebtedness at December 31, 2024 included: •superpriority senior secured notes issued by Lumen; •first and second lien secured notes issued by Level 3 Financing; and •senior unsecured notes issued by Lumen, Level 3 Financing, Qwest, and Qwest Capital Funding, Inc. All of these notes carry fixed interest rates and all principal is due on the notes’ respective maturity dates, which rates and maturity dates are summarized in the table above. Except for a limited number of senior notes issued by Qwest Corporation, the issuer generally can redeem the notes, at its option, in whole or in part, (i) pursuant to a fixed schedule of pre-established redemption prices, (ii) pursuant to a “make whole” redemption price or (iii) under certain other specified limited conditions. Revolving Letters of Credit We use various financial instruments in the normal course of business. These instruments include letters of credit, which are conditional commitments issued on our behalf in accordance with specified terms and conditions. Lumen may draw letters of credit under (i) an uncommitted $225 million revolving letter of credit facility and (ii) the Lumen Revolving Credit Facilities. At December 31, 2024, we had $220 million of undrawn letters of credit outstanding, $217 million of which were issued under the Lumen Revolving Credit Facilities, $1 million of which were issued under our $225 million uncommitted letter of credit facility and $2 million of which were issued under a separate facility maintained by one of our subsidiaries (the full amount of which is collateralized by cash). Certain Guarantees and Security Interests Lumen’s obligations under its RCF/TLA Credit Agreement are unsecured, but certain of Lumen’s subsidiaries have provided an unconditional guarantee of payment of Lumen’s obligations (such entities, the “Lumen Guarantors”) and certain of such guarantees will be secured by a lien on substantially all of the assets of the applicable Lumen Guarantors. Level 3 Parent, LLC, Level 3 Financing and certain of Level 3 Financing’s subsidiaries have provided an unconditional guarantee of payment of Lumen’s obligations under its Series A Revolving Credit Facility of up to $150 million and under its Series B Revolving Credit Facility of up to $150 million, in each case secured by a lien on substantially all of their assets (such entities, the “Level 3 Collateral Guarantors”). The guarantee by the Level 3 Collateral Guarantors may be reduced or terminated under certain circumstances. Qwest Corporation and certain of its subsidiaries have provided an unsecured guarantee of collection of Lumen’s obligations under the Lumen Revolving Credit Facilities and Lumen TLA (the “Qwest Guarantors”). Lumen’s obligations under the TLB are unsecured. The term loans issued under this agreement are guaranteed by the Lumen Guarantors and the Qwest Guarantors on the same basis as those entities guarantee Lumen’s obligations under its RCF/TLA Credit Agreement. Level 3 Financing’s obligations under the New Level 3 Credit Agreement are secured by a first lien on substantially all of its assets. In addition, the other Level 3 Collateral Guarantors have provided an unconditional guarantee of payment of Level 3 Financing’s obligations under the New Level 3 Credit Agreement secured by a lien on substantially all of their assets. Lumen’s superpriority secured senior notes are guaranteed by the Lumen Guarantors and the Qwest Guarantors on the same basis as those entities guarantee Lumen’s obligations under its RCF/TLA Credit Agreement (subject, in certain cases, to receipt of necessary regulatory approvals). Level 3 Financing’s obligations under its first lien notes are secured by a first lien on substantially all of its assets (subject, in certain cases, to receipt of necessary regulatory approvals), and are guaranteed by the other Level 3 Collateral Guarantors (or, for certain such guarantors, for certain notes, will be guaranteed upon the receipt of required regulatory approvals) on the same basis as the guarantees provided by such entities under the New Level 3 Credit Agreement. Level 3 Financing’s obligations under its second lien notes are secured by a second lien on substantially all of its assets, and are guaranteed by the other Level 3 Collateral Guarantors on the same basis as the guarantees provided by such entities under the New Level 3 Credit Agreement, except the lien securing such guarantees is a second lien. Lumen's reimbursement obligations under its outstanding letters of credit are secured by guarantees issued by certain of its subsidiaries. Level 3 Financing's obligations under its unsecured notes are guaranteed on an unsecured basis by the same affiliated entities that guarantee the New Level 3 Credit Agreement and Level 3 Financing's secured notes. The senior unsecured notes issued by Qwest Capital Funding, Inc. are guaranteed by its parent, Qwest Communications International Inc. Covenants Lumen Under its Superpriority Revolving/Term Loan A Credit Agreement, Lumen may not permit: (i) its maximum total net leverage ratio to exceed 5.75 to 1.00 as of the last day of each fiscal quarter, stepping down to 5.50 to 1.00 with respect to each fiscal quarter ending after December 31, 2024 and further stepping down to 5.25 to 1.00 with respect to each fiscal quarter ending after December 31, 2025; or (ii) its interest coverage ratio as of the last day of any test period to be less than 2.00 to 1.00. Lumen’s superpriority credit agreements and superpriority senior secured notes contain various representations and warranties and extensive affirmative and negative covenants. Such covenants include, among other things and subject to certain significant exceptions, restrictions on our ability to declare or pay dividends, repurchase stock, repay certain other indebtedness, create liens, incur additional indebtedness, make investments, engage in transactions with our affiliates, dispose of assets and merge or consolidate with other persons. Lumen’s senior unsecured notes were issued under four separate indentures. These indentures restrict Lumen’s ability to (i) incur, issue or create liens upon its property and (ii) consolidate with or merge into, or transfer or lease all or substantially all of its assets to, any other party. Under certain circumstances in connection with a “change of control” of Lumen, Lumen will be required to make an offer to repurchase each series of these senior notes (other than two of its older series of notes) at a price of 101% of the principal amount redeemed, plus accrued and unpaid interest. Level 3 Financing The New Level 3 Credit Agreement and Level 3 Financing's first and second lien secured notes contain various representations and extensive affirmative and negative covenants. Such covenants include, among other things and subject to certain significant exceptions, restrictions on their ability to declare or pay dividends, repay certain other indebtedness, create liens, incur additional indebtedness, make investments, dispose of assets and merge or consolidate with other persons. Also, under certain circumstances in connection with a “change of control” of Level 3 Parent, LLC or Level 3 Financing, Level 3 Financing will be required to make an offer to repurchase each series of its outstanding senior notes at a price of 101% of the principal amount redeemed, plus accrued and unpaid interest. Qwest Companies The senior notes of Qwest Corporation were issued under indentures dated April 15, 1990 and October 15, 1999. These indentures contain restrictions on the incurrence of liens and the consummation of certain transactions substantially similar to the above-described covenants in the indentures governing Lumen’s senior unsecured notes (but contain no mandatory repurchase provisions). The senior notes of Qwest Capital Funding, Inc. were issued under an indenture dated June 29, 1998 containing terms substantially similar to those set forth in Qwest Corporation's indentures. Impact of Covenants The debt covenants applicable to Lumen Technologies, Inc. and its subsidiaries could have a material adverse impact on their ability to operate or expand their respective businesses, to pursue strategic transactions, or to otherwise pursue their plans and strategies. The covenants of the Level 3 companies may significantly restrict the ability of Lumen Technologies, Inc. to receive cash from the Level 3 companies, to distribute cash from the Level 3 companies to other of Lumen’s affiliated entities, or to enter into other transactions among Lumen’s wholly-owned entities. Certain of the debt instruments of Lumen Technologies, Inc. and its subsidiaries contain cross payment default or cross acceleration provisions. When present, these provisions could have a wider impact on liquidity than might otherwise arise from a default or acceleration of a single debt instrument. The ability of Lumen Technologies, Inc. and its subsidiaries to comply with the financial covenants in their respective debt instruments could be adversely impacted by a wide variety of events, including unforeseen contingencies, many of which are beyond their control. Compliance As of December 31, 2024, Lumen Technologies believes it and its subsidiaries were in compliance with the provisions and financial covenants in their respective material debt agreements in all material respects. Guarantees Lumen does not guarantee the debt of any unaffiliated parties, but, as noted above, as of December 31, 2024 certain of its key subsidiaries guaranteed (i) its debt outstanding under its superpriority credit agreements, its superpriority senior secured notes and its $225 million letter of credit facility and (ii) the outstanding term loans or senior secured notes issued by certain other subsidiaries. As further noted above, several of the subsidiaries guaranteeing these obligations have pledged substantially all of their assets to secure certain of their respective guarantees. Subsequent Events As of February 15, 2025, (i) Lumen Technologies redeemed approximately $132 million aggregate principal amount of its unsecured senior notes and (ii) Level 3 Financing redeemed approximately $70 million aggregate principal amount of its unsecured senior notes, both in exchange for cash.

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