By Abigail W. Adams
Portland, Me., June 26 – Liberty Latin America Ltd. priced $350 million five-year convertible notes prior to the market open on Wednesday with a coupon of 2% and an initial conversion premium of 22.5%, according to a company news release.
Pricing came at the cheap end of 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 contingently convertible until Jan. 15, 2024. They are non-callable until July 19, 2022 and then subject to a 130% hurdle.
The notes 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 with an initial strike price of $22.23 and an initial cap price of $31.76.
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.
| Issuer: | Liberty Latin America Ltd.
|
| Securities: | Convertible senior notes
|
| Amount: | $350 million
|
| Greenshoe: | $52.5 million
|
| Maturity: | July 15, 2024
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $22.23
|
| Conversion rate: | 44.9767
|
| Call options: | Non-callable until July 19, 2022 and then subject to a 130% hurdle
|
| Pricing date: | June 26
|
| Settlement date: | June 28
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 1.5% to 2% and an initial conversion premium of 22.5% to 27.5%
|
| Stock symbol: | Nasdaq: LILA, LILAK
|
| Stock price: | $18.15 at market close June 25
|
| Market capitalization: | $3.29 billion
|
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