AT&T will retain its FirstNet network core and service
capabilities and following the close of the merger, Liberty Latin America will
support AT&T’s FirstNet expansion in Puerto Rico and the US Virgin Islands.
John Stephens, CFO said, “This transaction is a result of our ongoing strategic review of our balance sheet and assets to identify opportunities for monetization.”
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AT&T has been trying to reduce its massive debt load after the
acquisition of Time Warner. The company has raised $10 billion year to date
from asset sales and working capital initiatives. This is ahead of the target
of $6 billion to $8 billion it had set for the year.
The company plans to buy back shares in the fourth quarter of 2019 while continuing to reduce debt. AT&T aims to reach a net debt-to-adjusted EBITDA ratio in the 2.5x range this year.
AT&T’s shares were up slightly in afternoon trade on Wednesday.