Why Lumen Technologies Stock Is Sinking Today
Lumen Technologies (NYSE: LUMN) stock is seeing big sell-offs in Tuesday's trading. The company's share price was down 9.3% as of 3 p.m. ET. and had been down as much as 11.7% earlier in the daily session. Meanwhile, the S&P 500 index was down 0.5%.
Lumen stock is losing ground in conjunction with news that the company and its Level 3 Financings subsidiary are looking to buy back some of the telecom's outstanding bonds. The company published a press release this morning announcing that it had submitted offers to repurchase debt bonds totaling $945 million.
In addition to a moderate pullback for the broader market today on the heels of recent gains, Lumen stock is facing valuation pressures tied to its bond buyback offer. Along with its Level 3 Financing subsidiary, Lumen has issued cash offers to buy back all of its outstanding unsecured debt notes. The offer covers eight different sets of notes with different interest rates and maturity dates, and the two parties are offering between $0.86 and $1 for every $1 in principal amount.
Source Fool.com
