Liberty Latin America Ltd. announced that its subsidiary, Liberty Puerto Rico has issued $90 million in senior secured notes to support the funding needed for its acquisition of AT&T Puerto Rico’s assets on the island and the U.S. Virgin Islands.
The sale of additional 6.75% Senior Secured Notes due 2027 was executed on a private placement basis with a limited number of existing investors. The new notes priced at 102.5% of par, reflecting a yield to maturity of approximately 6.3%, and will increase the principal size of the Issuer’s outstanding notes to $1.2 billion, the company said.
Proceeds from the issuance have been placed into escrow and will support the funding of the transaction that is expected to close in the second half of 2020.
“We’re pleased to see continued support and trust from our investor base,” Liberty CEO Naji Khoury said.
“Since the announcement of our acquisition of AT&T’s assets in Puerto Rico & the USVI last October, we’ve made significant progress on the integration and regulatory approval process and remain on track to close the transaction later this year,” he said.
“We continue to be very excited about the combination with AT&T and the prospect of creating the leading integrated communications and entertainment provider in Puerto Rico,” Khoury added.
Puerto Rico’s wireless market is undergoing a transformation, with Liberty’s takeover of AT&T and the separate merger between T-Mobile and Sprint. Once the dust settles, the island will have three wireless service providers, down from five.