Lumen Technologies, Inc. (NYSE:LUMN) shares are trading higher on Monday after the company completed the sale of its Mass Markets fiber-to-the-home business in 11 states, including Quantum Fiber, to AT&T (NYSE:T) for $5.75 billion in cash.
The company announced the acquisition in May 2025.
Details
The divestiture includes nearly all consumer fiber networks and customer relationships in those states, serving over 1 million fiber customers and covering more than 4 million fiber-enabled locations.
Post deal completion, Lumen will retain key assets that form the backbone of its enterprise transformation, including national, regional, state, and metro fiber networks, central offices, and related real estate.
The company will also continue its copper-based consumer services, which provide steady financial contributions, while maintaining enterprise and wholesale fiber customers across all regions.
Debt Reduction
Lumen garnered proceeds of about $4.8 billion from the deal.
The company plans to use the same, along with cash on hand, to retire all super-priority debt, lowering annual interest expense by roughly $300 million and accelerating its transformation strategy.
The transaction is expected to reduce total debt to under $13 billion, bringing the net debt-to-adjusted EBITDA ratio below 4x.
Lumen plans to release fourth-quarter and full-year earnings on February 3.
Price Action: LUMN shares are up 2.49% at $9.045 at the last check on Monday.
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