LIBERTY LATIN AMERICA’S C&W CREDIT SILO COMPLETES REFINANCING PROGRAM; ISSUES NEW $755 MILLION SENIOR NOTES DUE 2033

Rhea-AI Summary

Liberty Latin America's Cable & Wireless (C&W) credit silo has successfully priced new $755 million senior notes due 2033 with a 9.0% coupon at par. The proceeds will be used to fully redeem C&W's $735 million senior notes due 2027, with the issuance expected to close on February 11, 2025.

This transaction marks the completion of C&W's near-term refinancing objectives, extending the maturity profile to approximately 6.5 years. Combined with the $1.0 billion refinancing of C&W's Senior Secured and Senior Notes from October and the $1.5 billion pricing of the new Term Loan in late January, C&W has raised a total of $3.3 billion in under six months. More than 75% of silo debt now matures in 2032 and beyond.

Positive

• Successfully raised $3.3 billion in total refinancing within six months
• Extended debt maturity profile to 6.5 years
• Strong market demand with significant subscription for the new notes
• 75% of silo debt pushed to 2032 and beyond

Negative

• Higher interest rate at 9.0% for new notes
• Increased total debt by $20 million ($755M vs $735M previous notes)

Insights

Financial Analyst

This comprehensive $3.3 billion refinancing program represents a strategic move that significantly strengthens Liberty Latin America's financial position. The latest $755 million senior notes issuance at 9.0% coupon rate, while reflecting current higher interest rate environments, provides important benefits:

The extension of C&W's maturity profile to 6.5 years is particularly noteworthy as it: 1) Reduces near-term refinancing risks during potential market volatility 2) Provides enhanced operational flexibility for strategic initiatives 3) Demonstrates strong market confidence in C&W's credit profile, evidenced by significant subscription levels.

The successful execution of three major refinancing transactions in under six months ($1.0B Senior Notes, $1.5B Term Loan and now $755M Senior Notes) showcases exceptional market access and timing. The company's ability to price and announce the latest issuance on the same day indicates strong investor demand and efficient market execution.

With over 75% of silo debt now extending beyond 2032, C&W has effectively created a more stable long-term capital structure. This enhanced financial flexibility could support:

• Strategic acquisitions in the Latin American telecommunications market
• Network infrastructure investments
• Digital transformation initiatives
• Market expansion opportunities

The refinancing's primary trade-off is accepting current market interest rates for longer-term stability. However, the significant subscription levels suggest investors view the 9.0% coupon as appropriately priced for the risk profile, while the extended maturities provide valuable protection against potential future market volatility.

• More than 75% of silo debt now maturing in 2032 & beyond

DENVER, Colorado--(BUSINESS WIRE)-- Liberty Latin America’s (“LLA” or the “Company”) largest credit silo, Cable & Wireless (“C&W”), has priced new $755 million senior notes due 2033 with a 9.0% coupon at par. Net proceeds from the issuance will be used to fully redeem C&W’s $735 million senior notes due 2027. This notes issuance is expected to close on February 11, 2025.

Chris Noyes, Liberty Latin America’s CFO, said, “This transaction completes our near-term refinancing objectives for the C&W credit silo. We have now successfully extended C&W’s maturity profile to approximately 6.5 years and combined with the $1.0 billion refinancing of C&W’s Senior Secured and Senior Notes last October and the $1.5 billion pricing of the new Term Loan in late January, we have raised $3.3 billion in aggregate in under six months. This latest issuance announced and priced on the same day, was significantly subscribed, highlights our ability to access markets efficiently, demonstrates the strength of the C&W credit silo, and positions the business for continued growth.”

ABOUT LIBERTY LATIN AMERICA

Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands BTC, Flow, Liberty and Más Móvil. The communications and entertainment services that we offer to our residential and business customers in the region include digital video, broadband internet, telephony and mobile services. Our business products and services include enterprise-grade connectivity, data center, hosting and managed solutions, as well as information technology solutions with customers ranging from small and medium enterprises to international companies and governmental agencies. In addition, Liberty Latin America operates a subsea and terrestrial fiber optic cable network that connects approximately 40 markets in the region.

Liberty Latin America has three separate classes of common shares, which are traded on the NASDAQ Global Select Market under the symbols “LILA” (Class A) and “LILAK” (Class C), and on the OTC link under the symbol “LILAB” (Class B).

For more information, please visit www.lla.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250210345153/en/

Investor Relations:

Kunal Patel: ir@lla.com

Media Relations:

Kim Larson: llacommunications@lla.com

Source: Liberty Latin America

FAQ

What is the size and interest rate of Liberty Latin America's new C&W senior notes (LILAK)?

Liberty Latin America's C&W has issued $755 million in senior notes due 2033 with a 9.0% coupon rate at par.

How much total refinancing has C&W (LILAK) completed in the past six months?

C&W has raised $3.3 billion in total refinancing through three transactions: $755 million senior notes, $1.0 billion Senior Secured and Senior Notes refinancing, and $1.5 billion Term Loan pricing.

What is the new debt maturity profile for C&W (LILAK) after the refinancing?

The refinancing has extended C&W's maturity profile to approximately 6.5 years, with more than 75% of silo debt now maturing in 2032 and beyond.

When will LILAK's new $755 million senior notes issuance close?

The new senior notes issuance is expected to close on February 11, 2025.