9/1/2023 0 Comments Stock quote lumn![]() ![]() Soon after the LatAm sale closed, the company's Level 3 Financing subsidiary repaid $700 million of its term loan. Lumen has begun to use the proceeds to pay down debt. ![]() Given that Lumen entered 2022 with $2.9 billion of federal NOLs, I suspect that it will incur less than $1 billion of deal-related cash taxes, putting its net proceeds a bit higher. ![]() ![]() Earlier this year, management estimated that discretionary proceeds would total around $7 billion after tax. Thus, Lumen generated pre-tax net cash proceeds of about $8 billion from these two deals. After closing adjustments, pension plan contributions, and approximately $1.5 billion of debt and finance lease assumption, net proceeds came to $5.3 billion. Last Monday, Lumen closed on an even bigger asset sale, divesting its ILEC (incumbent local exchange carrier) business in 20 states to affiliates of Apollo Global ( APO) for total consideration of $7.5 billion. The company divested its Latin American operations to alternative investment firm Stonepeak for $2.7 billion in cash. On August 1, Lumen completed the first of its two major asset sales. The recent plunge in Lumen stock represents a fantastic buying opportunity. Investors shouldn't fear the near-term earnings and cash flow headwinds that Lumen faces. Ironically, Lumen just completed a pair of divestitures that generated a sizable cash windfall and improved the business' long-term growth profile. Furthermore, its already-high dividend yield has ballooned to 14.9%, based on the stock's Friday closing price of $6.70. This sharp decline has left Lumen stock trading at its lowest level in more than three decades. Lumen stock has lost nearly half of its value this year, including a 31% slide just in the past month. Rising interest rates, inflation, and the slowing global economy have caused the telecom company to fall even further out of favor with investors. Shares of Lumen Technologies ( NYSE: LUMN) have struggled for years, but 2022 has been particularly terrible. was founded in 1968 and is headquartered in Monroe, Louisiana.Jetcityimage/iStock Editorial via Getty Images and changed its name to Lumen Technologies, Inc. The company was formerly knowen as CenturyLink, Inc. As of December 31, 2019, it served approximately 4.7 million broadband subscribers. Additionally, the company is involved in leasing and subleasing of space. Further, it offers IT and managed service that include network, hosting, public and private cloud, and other IT services, as well as intuitive management tools. In addition, the company provides voice and collaboration services, including primary rate interface service, local inbound service, switched one-plus, toll free, long distance, and international services and voice over internet protocol services, as well as satellite television services under DIRECTV name. also offers transport and infrastructure services comprising high bandwidth optical networks unlit optical fiber networks, and related professional and management services private line services, a direct circuit or channel specifically dedicated for connecting two or more organizational sites colocation and data center services and consulting services, which include network management, installation and maintenance of data equipment, and building of proprietary fiber-optic broadband networks for government and business customers. It offers IP and data services, including VPN data network, Ethernet, internet protocol (IP), and content delivery services. The company operates through five segments: International and Global Accounts Management, Enterprise, Small and Medium Business, Wholesale, and Consumer. Lumen Technologies, Inc., a facilities-based communications company, provides various integrated services under Â?CenturyLink' name to business and residential customers in the United States and internationally. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |