Liberty Latin America Declares Special Dividend for Shareholders
Liberty Latin America Ltd. has made headlines today with the announcement of a special dividend aimed at its common shareholders. This strategic move is set to enhance shareholder value and strengthen the company's financial footing as it continues its operations across Latin America and the Caribbean.
1. Details of the Special Dividend
The Board of Directors of Liberty Latin America has authorized a special dividend that will provide each holder of common shares with one newly issued share of 9.0% Fixed Rate Cumulative Perpetual Redeemable Series A Preference Shares for every ten common shares held. This new financial instrument comes with a par value of $0.01 per share and an initial liquidation price set at $25 per Series A Preference Share.
The aggregate issuance is estimated at approximately $500 million, translating to a distribution ratio equivalent to $2.50 in liquidation preference for each Class A, Class B, and Class C common share.
Cash Dividends and Trading Information
Holders of the newly issued Series A Preference Shares will benefit from quarterly cash dividends at a robust rate of 9.0% per annum, which will commence on September 15, 2026. Subsequent payments are scheduled for March 15, June 15, September 15, and December 15 each year.
Once distributed, the Series A Preference Shares will be non-voting, except for circumstances mandated by law or outlined in their terms. Following the distribution, these shares are expected to trade separately from the common shares on the Nasdaq Global Select Market under the ticker “LILAP.”
2. Record and Distribution Dates
As part of the special dividend declaration, a record date has been set for June 1, 2026, at 5:00 p.m. New York City time. The actual distribution of the Series A Preference Shares will occur on June 16, 2026, also at 5:00 p.m. New York City time.
However, the distribution remains contingent upon several conditions, including the registration of the Series A Preference Shares under the Securities Exchange Act of 1934 and the approval for their listing on the Nasdaq Global Select Market. Additionally, the special dividend must not be revoked prior to the distribution date.
3. Tax Implications and Future Guidance
Liberty Latin America has indicated that the distribution of Series A Preference Shares, excluding cash paid for fractional shares, is intended to be tax-free for shareholders in both the United States and the United Kingdom. Shareholders can expect more detailed information about the tax implications to be provided in the Investor Relations section of the company's website.
Prominent figures in the company, including Director Emeritus Dr. John C. Malone, Executive Chairman Mike Fries, and President and CEO Balan Nair, have expressed their intention to be long-term holders of the Series A Preference Shares, signaling confidence in the company's future prospects.
4. Looking Ahead
Liberty Latin America has stated that additional details regarding the special dividend will be announced in a forthcoming press release. Shareholders and market observers are encouraged to stay tuned for updates regarding the ex-dividend date and when-issued trading information.
As a leading communications company operating in over 20 countries, Liberty Latin America continues to demonstrate its commitment to enhancing shareholder value while effectively navigating the dynamic telecommunications landscape in the region.
For more information about the company and its offerings, interested parties can visit the official Liberty Latin America website.
