KHC - Lumen Technologies: Don't Get Too Excited Yet
2024-01-26 16:00:04 ET
Summary
- Lumen Technologies, Inc. could be getting 2027 debt maturities pushed out to 2029.
- The company could also get an additional $1 Billion in revolving credit from the new credit agreement.
- Not all items needed to be completed by Lumen to execute this extension have yet been satisfied, and the market may be reacting prematurely.
- I still believe Lumen Technologies has $5-$6 in asset value per share after subtracting current and long-term debt.
The market may be getting ahead of itself
This is my second article on Lumen Technologies, Inc. ( LUMN ), the first being titled "Lumen Technologies: Few Things Go To Zero." The premise of the article was based on a Howard Marks quote, with the matter being that many things get priced like they're heading into bankruptcy, but few things make it there....
Lumen Technologies: Don't Get Too Excited Yet