Actual events and results may differ materially from those anticipated, estimated, projected or implied by us in those statements if one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect. These forward-looking statements are not guarantees of future results and are based on current expectations only, are inherently speculative, and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. That makes this deal a good move for shareholders that should support further recovery in Lumen's share price over the next few years.Except for historical and factual information, the matters set forth in this presentation and other of our oral or written statements identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” “will,” and similar expressions are forward-looking statements as defined by the federal securities laws, and are subject to the “safe harbor” protections thereunder. However, selling its Latin American business will enable Lumen to finish fixing its balance sheet quickly. Selling Latin American fiber assets won't address Lumen's declining revenue trend, unlike the domestic asset sales the company has been investigating. The company could also consider raising its dividend, which already yields nearly 8%. That would accelerate its earnings-per-share growth, potentially leading to a higher valuation.
#Lumen technology stock free
Once it reaches its leverage target, Lumen will probably start using some of its substantial free cash flow for share buybacks. (In 2019, Lumen set a goal of reducing debt to between 2.75 and 3.25 times adjusted EBITDA.)
Even without any additional asset sales, that would likely get the company to the high end of its leverage target. It also has $1.6 billion of high-cost debt that can be called (repaid early) during that period.īetween its internally generated cash flow and the proceeds from selling the Latin America business - assuming it closes on schedule - Lumen should be able to repay all of this debt rather than refinancing it. Lumen has about $2.6 billion of debt maturing over the next 12 months. A good opportunity to accelerate debt reduction
0 kommentar(er)
