LIBERTY LATIN AMERICA’S C&W CREDIT SILO PRICES NEW $1.5 BILLION TERM LOAN DUE 2032

Rhea-AI Summary

Liberty Latin America's (LLA) Cable & Wireless (C&W) credit silo has priced a new $1.5 billion term loan maturing in 2032. The loan, bearing interest at SOFR + 3.25%, will be used to repay an existing $1.5 billion term loan due in 2028. The transaction is expected to close on February 18, 2025.

This refinancing, combined with the $1.0 billion refinancing of C&W's Senior Secured and Senior Notes from October, has extended the majority of C&W's maturities beyond 2031. The company's weighted average life of debt has increased to nearly 6 years, demonstrating C&W's strong credit position and market access capabilities.

Positive

• Extension of debt maturity from 2028 to 2032, improving financial flexibility
• Successful refinancing of $2.5 billion total debt ($1.5B term loan + $1.0B notes)
• Increased weighted average life of debt to nearly 6 years
• Demonstrated strong market access and credit silo strength

Negative

• Interest rate of SOFR + 3.25% on new term loan

Insights

Financial Analyst

The successful pricing of C&W's $1.5 billion term loan represents a significant strategic win for Liberty Latin America, particularly in the current market environment. The SOFR + 3.25% pricing indicates strong market confidence in C&W's credit profile, while the extension of maturity from 2028 to 2032 provides enhanced financial flexibility and reduced refinancing risk.

This refinancing, combined with October's $1.0 billion Senior Notes transaction, has transformed C&W's debt maturity profile, extending the weighted average life to nearly 6 years. This proactive liability management is particularly astute given the volatile interest rate environment, effectively locking in terms before any potential market deterioration.

The transaction's broader implications are threefold:

• Enhanced financial flexibility through extended maturities reduces near-term refinancing pressure
• Improved debt structure supports strategic growth initiatives in Latin American markets
• Demonstrated market access validates C&W's credit strength and operational stability

The successful execution of this $2.5 billion total refinancing effort (including October's transaction) positions C&W to focus on operational growth rather than debt management, while maintaining financial stability through various market cycles. This strategic financial engineering should provide a solid foundation for Liberty Latin America's continued expansion in its key markets.

02/04/2025 - 04:31 PM

• Refinancing transaction significantly extends silo’s weighted average life of debt

DENVER, Colorado--(BUSINESS WIRE)-- Liberty Latin America’s (“LLA” or the “Company”) largest credit silo, Cable & Wireless (“C&W”), priced a new $1.5 billion term loan at the end of January 2025. This term loan matures in 2032, bears interest at a rate of SOFR + 3.25%, and the net proceeds will be used to repay a $1.5 billion term loan maturing in 2028. This transaction is expected to close on February 18, 2025.

Chris Noyes, Liberty Latin America’s CFO, said, “Combined with the $1.0 billion refinancing of C&W’s Senior Secured and Senior Notes last October, we have now successfully extended the majority of C&W’s maturities beyond 2031, bringing our weighted average life of debt to nearly 6 years. This new $1.5 billion term loan 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/20250204556532/en/

Investor Relations:

Kunal Patel: ir@lla.com

Media Relations:

Kim Larson: llacommunications@lla.com

Source: Liberty Latin America Ltd.

FAQ

What is the size and maturity of Liberty Latin America's new C&W term loan?

Liberty Latin America's C&W credit silo priced a new $1.5 billion term loan maturing in 2032.

What is the interest rate on LILAK's new 2032 term loan?

The new term loan bears interest at a rate of SOFR + 3.25%.

When is the closing date for LILAK's C&W refinancing transaction?

The refinancing transaction is expected to close on February 18, 2025.

How does the new term loan affect LILAK's C&W debt maturity profile?

The refinancing extends the majority of C&W's maturities beyond 2031 and increases the weighted average life of debt to nearly 6 years.

What is the total amount of debt refinanced by LILAK's C&W credit silo in recent months?

C&W has refinanced a total of $2.5 billion in debt, including the new $1.5 billion term loan and $1.0 billion in Senior Secured and Senior Notes refinanced in October.