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Liberty Latin America (NASDAQ: LILA) adds $250M term loan deal financing

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Liberty Latin America disclosed a new secured financing for its subsidiaries Emerald Wave 3 LLC, Emerald Mobile Network 2 LLC and Emerald Network 3 LLC. The Credit Agreement provides initial term loan commitments of $200.0 million and delayed draw term loan commitments of $50.0 million, with additional uncommitted pari passu incremental term loans of up to $350.0 million. These term loans mature on September 23, 2030 and carry a fixed annual interest rate of 9.75%.

The loans are secured by substantially all assets of the borrower and guarantor entities, including spectrum and fixed network assets. Proceeds are expected to cover transaction fees and fund senior secured intercompany loans to Liberty Mobile Puerto Rico Inc. and related guarantors. The agreement also allows certain future indebtedness and cash flows to be loaned or distributed to these Puerto Rico entities, and permits additional pari passu, second-lien, or unsecured debt subject to conditions.

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Insights

Liberty Latin America locks in 9.75% fixed-term debt to fund Puerto Rico affiliates.

Liberty Latin America subsidiaries entered a secured Credit Agreement providing $200.0 million of initial term loans and $50.0 million of delayed draw term loans, plus up to $350.0 million of uncommitted incremental facilities. The debt is secured against spectrum and fixed network assets and matures on September 23, 2030 at a fixed interest rate of 9.75%, which illustrates a relatively high cost of capital for this borrowing structure.

The agreement includes prepayment fees that step down over time: 3% for voluntary repayments after six months and on or before the first anniversary of closing, 1% between the first and second anniversaries, and no fee thereafter. This design encourages stability of funding in the first two years while preserving flexibility later in the term.

Proceeds are expected to fund fees and expenses and to support senior secured intercompany loans to Liberty Mobile Puerto Rico Inc. and related guarantors, effectively channeling capital into the Puerto Rico operations within a structured secured framework. The agreement also permits additional pari passu, second-lien or unsecured indebtedness, so the overall leverage profile of these entities will depend on how much of the incremental capacity, up to $350.0 million, is ultimately utilized.

Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Understanding 8-K Material Events →
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
 
CURRENT REPORT 
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported): September 23, 2025
 
LIBERTY LATIN AMERICA LTD.
(Exact Name of Registrant as Specified in Charter)
 
Bermuda 001-38335 98-1386359
(State or other jurisdiction
of incorporation)		 (Commission File Number) (IRS Employer
Identification #)
Clarendon House,
2 Church Street,
Hamilton HM 11, Bermuda
(Address of Principal Executive Office) 
(303) 925-6000
(Registrant’s telephone number, including area code)

 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolsName of Each Exchange on Which Registered
Class A Common Shares, par value $0.01 per shareLILAThe NASDAQ Stock Market LLC
Class C Common Shares, par value $0.01 per shareLILAKThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐ 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o



Item 7.01    Regulation FD Disclosure

On September 23, 2025, Emerald Wave 3 LLC, Emerald Mobile Network 2 LLC and Emerald Network 3 LLC (collectively, the “Borrowers”), each an indirect, wholly owned subsidiary of the Registrant, entered into a Credit Agreement among the Borrowers, the guarantors party thereto (the “Guarantors”), Diameter Finance Administration LLC, as administrative agent and collateral agent, and the lenders party thereto (the “Credit Agreement”). The obligations under the Credit Agreement are secured by substantially all of the assets of the Borrowers and the Guarantors, consisting of, among other things, spectrum and fixed network assets.

The Credit Agreement provides for, among other things, (i) initial term loan commitments in an aggregate principal amount of $200.0 million, (ii) delayed draw term loan commitments in an aggregate principal amount of $50.0 million and (iii) uncommitted pari passu incremental term loans of up to $350.0 million. The loans made pursuant to the initial term loan commitments (the “Initial Term Loans”) and the delayed draw term loan commitments (the “Delayed Draw Term Loans” and, together with the Initial Term Loans, the “Term Loans”) will mature on September 23, 2030 and accrue interest at a fixed rate per annum equal to 9.75%.

The Term Loans may be repaid at the option of the Borrowers at any time, in whole or in part, subject to payment of the following prepayment fees: (i) on or prior to the six month anniversary of the closing date under the Credit Agreement, 0.00%; (ii) after the six month anniversary of the closing date and on or prior to the first anniversary of the closing date, 3.00%; (iii) after the first anniversary of the closing date and on or prior to the second anniversary of the closing date, 1.00%; and (iv) thereafter, 0.00%.

The proceeds of the Term Loans are expected to be used by the Borrowers (i) to pay fees and expenses in connection with the transactions and (ii) to fund one or more senior secured loans to Liberty Mobile Puerto Rico Inc. (“Liberty Mobile PR”), an indirect, wholly owned subsidiary of the Registrant, pursuant to a Senior Secured Intercompany Loan Agreement dated as of September 23, 2025 between Liberty Mobile PR, as initial borrower, the guarantors party thereto (the “Intercompany Loan Guarantors”) and the Borrowers, in their capacity as initial lenders thereunder. The Credit Agreement provides that proceeds of future indebtedness and net cashflows from operations may be loaned or distributed, subject to certain conditions, to Liberty Mobile PR and the Intercompany Loan Guarantors. The Credit Agreement also provides for the incurrence of future indebtedness by the Borrowers, which may be secured on a pari passu basis with the Initial Term Loans (up to $350.0 million) or on a second-lien or unsecured basis.

On September 25, 2025, Liberty Latin America Ltd. (the “Company”) issued a press release to announce the foregoing financing, which is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The Company is furnishing as Exhibit 99.2 certain disclosure information, which was provided to the creditors (the “Ad Hoc Group”) described in Exhibit 99.2, and a summary of the material terms of Liberty Communications of Puerto Rico LLC and LLA Holdco LLC’s last proposal, dated September 18, 2025, and the Ad Hoc Group’s last proposal, dated September 18, 2025, pursuant to certain cleansing obligations with those creditors.

The information set forth under this Item 7.01, including the press release and disclosure information attached as Exhibits 99.1 and 99.2, respectively, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities of that Section.

Item 9.01    Financial Statements and Exhibits

(d)        Exhibits.

Exhibit No.Exhibit Name
99.1
Press Release dated September 25, 2025
99.2
Disclosure Information
101.SCHXBRL Inline Taxonomy Extension Schema Document.
101.DEFXBRL Inline Taxonomy Extension Definition Linkbase.
101.LABXBRL Inline Taxonomy Extension Label Linkbase Document.
101.PREXBRL Inline Taxonomy Extension Presentation Linkbase Document.
104Cover Page Interactive Data File.* (formatted as Inline XBRL and contained in Exhibit 101)


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 LIBERTY LATIN AMERICA LTD.
  
 By:/s/ JOHN M. WINTER
 John M. Winter
Senior Vice President, Chief Legal Officer & Secretary
 
Date: September 25, 2025

Source: View Original Filing on SEC EDGAR

FAQ

What new financing did Liberty Latin America (LILA) disclose?

Liberty Latin America disclosed a new secured Credit Agreement for its Emerald subsidiaries providing $200.0 million of initial term loans, $50.0 million of delayed draw term loans, and up to $350.0 million of uncommitted incremental term loans.

What are the key terms of the new term loans for Liberty Latin America (LILA)?

The term loans mature on September 23, 2030 and carry a fixed annual interest rate of 9.75%. They are secured by substantially all assets of the borrowers and guarantors, including spectrum and fixed network assets.

How will the proceeds of Liberty Latin America’s new Credit Agreement be used?

Proceeds of the term loans are expected to be used to pay transaction fees and expenses and to fund senior secured intercompany loans to Liberty Mobile Puerto Rico Inc. and related guarantors under a Senior Secured Intercompany Loan Agreement dated September 23, 2025.

What prepayment fees apply to Liberty Latin America’s new term loans?

The borrowers may prepay at any time, with fees of 0.00% on or before six months after closing, 3.00% after six months and on or before the first anniversary, 1.00% after the first and on or before the second anniversary, and 0.00% thereafter.

Does the Credit Agreement allow Liberty Latin America (LILA) subsidiaries to incur additional debt?

Yes. The agreement permits future indebtedness by the borrower entities, including pari passu incremental term loans up to $350.0 million and additional second-lien or unsecured debt, subject to specified conditions.

What information did Liberty Latin America furnish alongside this 8-K filing?

The company furnished as exhibits a press release dated September 25, 2025 announcing the financing (Exhibit 99.1) and disclosure information provided to an Ad Hoc Group of creditors, including summaries of recent proposals (Exhibit 99.2).