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Liberty Latin America to Acquire Puerto Rico, US Virgin Islands Operations of AT and T for USD 1.95bn
Friday 11 October 2019

11 October 2019 - Colorado, US-based communications company Liberty Latin America Ltd. (NASDAQ: LILA) (NASDAQ: LILAK) (OTC: LILAB) has agreed to acquire wireless and wireline operations of AT and T Inc. (NYSE: T) in Puerto Rico and the US Virgin Islands, the company said.
In the all-cash transaction, the acquisition assets are valued at an enterprise value of USD 1.95bn on a cash- and debt-free basis.
Liberty Latin America intends to finance the USD 1.95 bn acquisition through a combination of USD 2.2bn in borrowings on the combined acquisition Assets and Liberty Puerto Rico (including refinancing USD 922.5m in existing term loans at Liberty Puerto Rico) and the remaining approximately USD 750m from Liberty Latin America's committed liquidity of USD 2.0bn at June 30, 2019.
Liberty Latin America said the acquisition is an exciting and unique opportunity to expand its business in one of our best markets.
This acquisition is at an attractive valuation, in the mid-6s in terms of EV to OCF excluding synergies, and consistent with a disciplined approach toward M and A. With this combination, the company will increase its B2B presence and materially increase US dollar revenue weighting at LLA.
The acquisition Assets provide consumer mobile and B2B services in Puerto Rico and the US Virgin Islands, excluding DIRECTV customers. In Puerto Rico, which represents approximately 90% of the revenue of the assets to be acquired, AT and T's business is the provider of mobile services
Liberty Latin America is a communications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands VTR, Flow, Liberty, Más Móvil, BTC, UTS and Cabletica.
Liontree LLC and Credit Suisse are acting as financial advisors to Liberty Latin America on the transaction.
Date Published: 11/10/2019
Target: Wireless and wireline operations of AT and T Inc. in Puerto Rico and the US Virgin Islands
Country: USA
Deal Size: 1.95bn (USD)
Sector: Telecommunications
Type: LBO
Financing: Cash and Stock
Status: Agreed
Vendor: ATT
Buyer: Liberty Latin America
Buyer Advisor: Liontree LLC , Credit Suisse