Liberty Latin America’s $1.95 Billion Acquisition of AT&T’s Operations in Puerto Rico and the US Virgin Islands

Ropes & Gray advised Liberty Latin America on the financing aspects of the transaction.

Liberty Latin America (NASDAQ: LILA and LILAK, OTC Link: LILAB) executed the acquisition of AT&T’s wireless and wireline operations in Puerto Rico and the US Virgin Islands. In the all-cash transaction, the Acquisition Assets are valued at an enterprise value of $1.95 billion on a cash- and debt-free basis.

The deal – which will create the leading integrated consumer and B2B communications and entertainment provider in Puerto Rico – was financed through a combination of $2.2 billion in borrowings on the combined Acquisition Assets and Liberty Puerto Rico (including refinancing $922.5 million in existing term loans at Liberty Puerto Rico) and the remaining approximately $750 million from Liberty Latin America’s committed liquidity of $2.0 billion at June 30, 2019. The financing comprises of a $1.0 billion term loan B facility and the issuance of $1.2 billion 6.750% senior secured notes due 2027.

The acquisition is subject to the customary closing conditions, including reviews by the United States Federal Communications Commission and the Department of Justice. The deal is expected to close in Q2 2020.

Liontree LLC and Credit Suisse are acting as financial advisors to Liberty Latin America on the transaction.

Liberty Latin America Ltd. operates as a telecommunication company offering video, broadband Internet, telephony, and mobile services. Liberty Latin America also delivers entertainment services.

The Ropes & Gray team was led by finance partners Jane Rogers (Picture), Robert Haak and Alex Robb. Jane Rogers advised on the bank financing aspects of the deal, supported by finance associates Greig Lamont, Pinar Celebi and Katya Dorokhova. Robert Haak advised on the bond financing aspects of the deal, supported by finance associates Mohammed Al Rasheed, Daniela Mozetic and Ashish Alexander.

Involved fees earner: Mohammed Al Rasheed – Ropes & Gray; Pinar Celebi – Ropes & Gray; Robert Haak – Ropes & Gray; Greig Lamont – Ropes & Gray; Daniela Mozetic – Ropes & Gray; Alexander Robb – Ropes & Gray; Jane Rogers – Ropes & Gray;

Law Firms: Ropes & Gray;

Clients: Liberty Latin America Ltd;