Bondholders organize to resist Lumen's Qwest debt swap
Updated
Updated · Bloomberg · May 5
Bondholders organize to resist Lumen's Qwest debt swap
4 articles · Updated · Bloomberg · May 5
A group of Qwest creditors has hired Davis Polk after Lumen launched an exchange covering about $1.64bn of bonds due in 2056 and 2057.
The proposed swap would offer new bonds at par with the same coupon and maturity while removing almost all existing covenants protecting lenders.
Talks are focused on strengthening a parent-company guarantee and shortening the maturity of the replacement bonds, as investors push back against weaker terms.
Is Lumen's plan to strip debt covenants a brilliant move or a repeat of past mistakes?
Can Lumen fund its AI ambition if bondholders block its controversial debt swap?