Liberty Puerto Rico secures $250M financing deal
Liberty Puerto Rico has secured a five-year, $250 million financing facility to strengthen liquidity and support future investments as the company prepares to separate from Liberty Latin America.
The financing, which matures in 2030 with a fixed coupon of 9.75%, is backed by select fixed network and wireless spectrum assets. Diameter Capital Partners provided the funding, with $200 million already drawn and another $50 million available over the next year.
“These funds are destined to cover ongoing business purposes, operating expenses and capital expenditures, including continued efforts to strengthen our fixed and mobile networks,” said Giovanna Ramírez de Arellano, senior director of communications and corporate responsibility at Liberty Puerto Rico.
Christopher Noyes, chief financial officer of Liberty Latin America, said the deal aligns with previously announced plans.
“As part of the strategic initiatives announced during our [second quarter] 2025 earnings results, we set out the intention to meet liquidity requirements in Puerto Rico utilizing local Puerto Rican assets,” he said.
“We are pleased that Liberty Puerto Rico has partnered with Diameter Capital Partners to confirm such a facility which serves to provide incremental capital to further support business operations and future investments,” he said.
The financing follows Liberty Latin America’s announcement in August that it will spin off its operations in Puerto Rico and the U.S. Virgin Islands to optimize capital structure and unlock shareholder value.
“It is critical that Liberty Puerto Rico has a strong and sustainable capital structure going forward, and we are working hard to achieve that desired outcome,” Liberty Latin America CEO Balan Nair said at the time.
“With respect to Liberty Puerto Rico’s liquidity, we expect that the business will utilize its own assets to raise any required incremental capital. We look forward to providing updates as we execute our plans,” he said.
Liberty Puerto Rico has reported growth in key metrics, including a 22% year-over-year increase in adjusted operating income before depreciation and amortization in the second quarter, along with improvements in customer satisfaction and churn, as News is my Business reported.
The company stressed its long-standing presence on the island and its commitment to maintaining investment in infrastructure and services during the transition.
Moelis & Co. LLC served as financial adviser, and Ropes & Gray LLP acted as legal counsel to Liberty Puerto Rico.
