Liberty Latin America talks $350 million five-year convertibles to yield 1.5%-2%, up 22.5%-27.5%

By Abigail W. Adams

Portland, Me., June 25 – Liberty Latin America Ltd. plans to price $350 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 1.5% to 2% and an initial conversion premium of 22.5% to 27.5%, according to a market source.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $52.5 million.

The notes are non-callable until July 19, 2022 and then subject to a 130% hurdle.

They are convertible into the company’s class C common shares, cash, or a combination of both at the company’s option.

In connection with the pricing, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

Liberty Latin America is a Denver-based telecommunications company operating in 20 countries across Latin America and the Caribbean.

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