Author Topic: LILA - Liberty Global Latin America tracker  (Read 122674 times)

Value92

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Re: LILA - Liberty Global Latin America tracker
« Reply #370 on: August 09, 2019, 02:16:46 AM »
Plus LILA and Millicom keep circling each other.  Talk, can't decide on price/leadership and then break off.

Eventually.

I believe it will happen one day. Ramos is on the Charter board ;)


chesko182

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Re: LILA - Liberty Global Latin America tracker
« Reply #371 on: October 09, 2019, 05:44:41 AM »
AT&T to Sell Puerto Rico and U.S. Virgin Islands Operations
Liberty Latin American to pay $1.95 billion for businesses

https://www.wsj.com/articles/at-t-to-sell-puerto-rico-and-u-s-virgin-islands-operations-11570624070
twitter: @chesko182

ALLY, JPM, UHAL, BRK, GM, FCAU, AER, LBRDA, SEMUF, SPOT, ERJ

Foreign Tuffett

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Re: LILA - Liberty Global Latin America tracker
« Reply #372 on: October 09, 2019, 05:57:03 AM »
AT&T to Sell Puerto Rico and U.S. Virgin Islands Operations
Liberty Latin American to pay $1.95 billion for businesses

https://www.wsj.com/articles/at-t-to-sell-puerto-rico-and-u-s-virgin-islands-operations-11570624070

Where is LILA getting $2 billion dollars from? It already carries a heavy debt load.

rogermunibond

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Re: LILA - Liberty Global Latin America tracker
« Reply #373 on: October 09, 2019, 06:47:52 AM »
From the release - enough synergies to get that leverage down to below 4x?

Liberty Latin America intends to finance the $1.95 billion acquisition (plus fees and expenses) 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. As a result of the contemplated financing, we anticipate the pro forma net leverage ratio2 of our combined Puerto Rico and U.S. Virgin Islands assets will be ~4.25x (before synergies), which results in a decline in net leverage from 4.5x as reported at June 30, 2019 for Liberty Puerto Rico.
« Last Edit: October 09, 2019, 06:50:02 AM by rogermunibond »

dwy000

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Re: LILA - Liberty Global Latin America tracker
« Reply #374 on: October 09, 2019, 07:13:54 AM »
That's at Liberty Puerto Rico.  A good chunk of the cash is coming from the parent so overall leverage has to increase.  If they're buying at 6x OCF using all debt it's hard to see how overall leverage comes down unless the synergies are like half the deal value.

rogermunibond

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Re: LILA - Liberty Global Latin America tracker
« Reply #375 on: October 09, 2019, 07:23:20 AM »
OTOH FCC commits funding to harden telecom assets in PR and USVI

https://www.rcrwireless.com/20190927/wireless/fcc-funding-pr-u-virgin-islands

rogermunibond

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Re: LILA - Liberty Global Latin America tracker
« Reply #376 on: October 09, 2019, 07:44:37 AM »
Net debt probably goes from $6,117 to $8,067

Ebitda 19E goes from $1,521 to $1,850(?)

So moving from 3.9x to 4.36x net debt/ebitda

dwy000

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Re: LILA - Liberty Global Latin America tracker
« Reply #377 on: October 09, 2019, 08:05:16 AM »
Net debt probably goes from $6,117 to $8,067

Ebitda 19E goes from $1,521 to $1,850(?)

So moving from 3.9x to 4.36x net debt/ebitda

It appeared the company was thinking $2.2bn in overall price including fees and expenses.  But OCF could be higher once you layer in synergies.

Either way, combining the #1 wireless and #1 broadband player is great strategic fit and sets up well for Medium to long term. 

Foreign Tuffett

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Re: LILA - Liberty Global Latin America tracker
« Reply #378 on: October 09, 2019, 09:10:57 AM »
While my initial impression of this deal was negative, I have changed my mind:

Late September 2018 - Hurricane Maria hits Puerto Rico, causing massive damage

10/2018 - LILA acquires 40% minority stake in Liberty Puerto Rico for 9.5 million LILAK shares. This gives it full ownership of Liberty Puerto Rico

7/2019 - Reuters reports that AT&T, which is looking to reduce its massive debt load, has put its Puerto Rico operations up for sale for ~$3 billion. 

https://www.reuters.com/article/us-at-t-divestiture-puertorico-idUSKCN1UD30O

Today - LILA is acquiring AT&T's Puerto Rico operations for $1.95 billion. Once the transaction closes LILA will be #1 in mobile and #1 in cable/fixed on the island. 


I think LILA is being opportunistic in assembling a dominant position in Puerto Rico at attractive prices

Value92

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Re: LILA - Liberty Global Latin America tracker
« Reply #379 on: October 09, 2019, 10:51:20 AM »
The hard work was done years ago by Mauricio and Erik by putting together the fixed asset spanning the entire island. The addition of the mobile network is the logical conclusion. Great work set up years in advance!