A senior secured term loan is a type of borrowing where a company borrows money and promises to pay it back over a fixed period, with the loan secured by the company's assets as collateral. Because it is "senior," it has priority over other debts if the company faces financial trouble, and being "secured" means lenders have a claim on specific assets. For investors, this makes the loan a safer and more predictable investment compared to unsecured or subordinate debts.
revolving credit facilityfinancial
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
SOFRfinancial
The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.
incremental term loanfinancial
An incremental term loan is an additional lump-sum loan that a borrower adds onto an existing long-term loan package, usually under the same agreement but with new funds and repayment terms. For investors, it matters because this extra borrowing changes a company’s debt load and interest obligations—like adding a room to a house and increasing the mortgage—potentially affecting credit risk, cash available for dividends, and the value of existing shares or bonds.
liquidityfinancial
Liquidity is how easily and quickly an asset or investment can be converted into cash without losing value. It matters to investors because higher liquidity means they can access their money quickly if needed, while lower liquidity can make it harder to sell assets promptly or at a fair price, potentially creating financial challenges. Think of it like trying to sell a common item versus a rare collectible—it's much easier to sell the common item fast.
DENVER, Colorado--(BUSINESS WIRE)--
Liberty Latin America Ltd. ("Liberty Latin America") (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced that its Liberty Puerto Rico subsidiary has successfully entered into two new financing agreements through existing unrestricted subsidiaries that, as previously disclosed in September 2025, are parties to an existing senior secured term loan credit facility that matures in 2030 (the “2030 Facility”).
First, the unrestricted subsidiaries and the lenders under Liberty Puerto Rico’s prior revolving credit facility (the “2027 RCF”) entered into a new senior secured revolving credit facility that currently has $140 million of availability. Interest on the new revolving credit facility accrues on drawn amounts at a rate equal to SOFR plus 4.25%, subject to certain adjustments. The new revolving credit facility is secured by substantially the same assets as the 2030 Facility and matures in September 2030. The 2027 RCF, which was scheduled to mature in March 2027, has been repaid in full and cancelled.
Additionally, Liberty Puerto Rico has successfully raised an additional $200 million senior secured term loan financing through existing unrestricted subsidiaries. This additional financing was advanced as an incremental term loan under the 2030 Facility, has a fixed interest rate of 12.0% per annum, and is secured by substantially the same assets as the 2030 Facility. $150 million of the new facility has been drawn and $50 million will be available over the next twelve months. The additional financing was made available by Helix Partners and Silver Point Capital.
Christopher Noyes, SVP, Chief Financial Officer for Liberty Latin America, commented, “These new financing agreements, which follow the $260 million secured facility previously announced in September 2025, continue to demonstrate the value of the local assets and their ability to support liquidity for Liberty Puerto Rico.”
Moelis & Company LLC acted as financial adviser and Latham & Watkins LLP and Ropes & Gray LLP acted as legal counsels to Liberty Puerto Rico.
Forward-Looking Statements and Disclaimer
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our Puerto Rico operations’ future financial condition, liquidity, and performance; 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 risks referred to 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.
ABOUT LIBERTY LATIN AMERICA LTD.
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 over 30 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).
