Transaction includes ~1,300 sites across 6 markets in the
Caribbean and Panama
Unlocks significant value at an accretive cash flow multiple
with $355 million of expected
proceeds
DENVER, Nov. 10,
2023 /PRNewswire/ -- Liberty Latin America Ltd.
("Liberty Latin America" or the
"Company") (NASDAQ: LILA and LILAK, OTC Link: LILAB) today
announced it has reached an agreement with Phoenix Tower
International ("PTI") to monetize approximately 1,300 mobile tower
sites across Panama, Jamaica, The Bahamas, Puerto
Rico, Barbados, and the
British Virgin Islands. The
transaction also provides advantageous arrangements to extend
coverage with a further 500 sites being built by Liberty Latin America and PTI over the next five
years. Inclusive of these commitments the total proceeds increase
to $407 million. Net proceeds are
expected to be used to reduce debt and further invest in the
Company's businesses.
Balan Nair, President and CEO of
Liberty Latin America, commented,
"We are pleased to work with a high-quality partner with extensive
operating experience in our region in PTI and reach an agreement
that crystallizes the value of our mobile tower infrastructure
assets. In addition, the long-term lease agreements and ongoing
coverage extension will enable us to continue delivering leading
mobile services to our customers and support network expansion
including future 5G deployment plans across the Caribbean and Latin
America, while lowering capital costs associated with these
assets. This deal is a great example of our disciplined approach to
delivering shareholder value through free cash flow accretive
transactions."
Dagan Kasavana, Chief Executive Officer of Phoenix Tower
International, said, "PTI is excited to partner with Liberty Latin America and expand its presence in
the Caribbean and Panama. This transaction strengthens PTI's
presence in existing markets while representing new market
expansion for PTI in the markets of The Bahamas, BVI, and Barbados. As the largest independent owner of
wireless towers in the Americas, we look forward to enhancing
wireless access in these markets by serving all our wireless
customers and the populations of the region with better
connectivity and solutions to help our business partners achieve
their goals. We appreciate greatly the hard work of both teams to
consummate this fantastic transaction."
The terms of the transaction include long-term Master Lease
Agreements for each market for the Company's continued use of the
telecommunications towers infrastructure following completion of
the transaction.
Baker Botts LLP served as legal counsel and PJT Partners
assisted Liberty Latin America as
part of its ongoing financial advice to the Company. Choate, Hall
& Stewart LLP served as legal counsel and Mizuho Americas acted
as financial advisor to PTI.
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, and through ClaroVTR, our
joint venture in Chile. 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).
ABOUT PHOENIX TOWER
INTERNATIONAL
Phoenix Tower International (PTI) was established in 2013 with a
core mission to serve as a leading site provider to wireless
operators in rapidly expanding markets worldwide. PTI is backed by
a diverse group of investors, including funds managed by
Blackstone, Wren House, USS, and key members of its management
team. Our global headquarters is based in Boca Raton, Florida, and we maintain
operational offices in all the markets where PTI conducts business.
PTI, and its subsidiaries, will, pro forma for this transaction,
own and operate over 24,000 telecom towers throughout Europe, the United
States, Latin America and
the Caribbean in 24 countries.
For more information, please visit www.phoenixintnl.com
FORWARD LOOKING STATEMENT
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, but not limited to, statements regarding the
timing, benefits, expected impact and use of proceeds from the
transaction and other information and statements that are not
historical fact. These forward-looking statements involve certain
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by these statements.
These risks and uncertainties include, but are not limited to,
events that are outside of our control, such as natural disasters
and pandemics (including COVID-19), our ability to satisfy the
conditions to closing the transaction, as well as other factors
detailed from time to time in our filings with the Securities and
Exchange Commission, including our most recently filed Form 10-K
and Form 10-Q. These forward-looking statements speak only as of
the date of this press release. We expressly disclaim any
obligation or undertaking to disseminate any updates or revisions
to any forward-looking statement contained herein to reflect any
change in our expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based.
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SOURCE Phoenix Tower International